Postmen, grameen dak sevaks may soon start selling insurance policies

Postmen and grameen dak sevaks might soon be able to sell insurance policies, with regulator Irdai issuing guidelines wherein such people have to be sponsored by the India Post Payments Bank (IPPB).

The IPPB, which is a corporate agent, can seek permission from Irdai for sponsoring postmen and grameen dak sevaks of Department of Posts (DoP) to act as Point of Salesperson (PoS), Irdai said.

ln case the authority grants permission, IPPB shall be responsible for all acts of omission and commission of the persons appointed as PoS, it added.

The regulator said the DoP will have to identify postmen and grameen dak sevaks and furnish the list to it from time to time and IPPB may have tie-ups with as many number of insurers as allowed under the regulations.

"These postmen and grameen dak sevaks will be operating largely in un-banked and under-banked geographical areas and can provide the last mile reach to sell insurance products in remote and rural areas," Irdai said.

Bulk of products in motor insurance, travel insurance, personal accident insurance, term insurance, require very little under writing as these are largely pre-underwritten products.

Based on the information provided by the prospectus, the insurance policy is automatically generated by the system. The intervention required for such a product is minimal and the training and examination for such persons could be of a lesser degree, Irdai said.

"Therefore, in order to facilitate the growth of insurance business in the country and to enhance insurance penetration and insurance density, the authority as part of its developmental agenda issued the guidelines on PoS Persons," Irdai said.

"This would provide financial inclusion and increase insurance density and penetration in the country which is in line with the objective of the Authority," it said.

The IPPB will be responsible for training and certification of postmen and grameen dak sevaks; daily reconciliation and reporting of all transactions; compliance to code of conduct; compliance with KYC norms; setting up of a robust grievance redressal mechanism to address grievances raised by customers, as per the guidelines.

Irdai said IPPB will also have to put in place a system to identify the postman and grameen dak sevak who has sold an insurance policy.