Soon, postmen and grameen dak sevaks appointed by the Department of Post will be able to sell insurance policies.
Soon, postmen and grameen dak sevaks appointed by the Department of Post will be able to sell insurance policies. The Insurance Regulatory and Development Authority of India (IRDAI) has issued guidelines for the India Post Payment Bank (IPPB) to appoint the postmen and grameen dak sevaks as Point of Sales Person (insurance seller). IPPB has been set up under the Department of Post to leverage the reach and visibility of Post Office across India, through its physical network of 1,55,000 post offices and doorstep banking services enabled through its workforce of over 3 lakhs grameen dak sevaks and postmen. IPPB also intends to distribute third party products including insurance policies.
On the role of postmen and grameen dak sevaks in distributing insurance policies, IRDAI said: “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. This would provide financial inclusion and increase insurance density and penetration in the country which is in line with the objective of the Authority.”
IRDAI said that IPPB may apply to the Authority to seek permission to sponsor postmen and grameen dak sevaks to act as insurance distributors. If IRDAI grants permission, “IPPB shall be responsible for all acts of omission and commission of the postmen and grameen dak sevaks appointed as Point of Salesperson.”
The postmen and grameen dak sevaks will be identified by Department of Posts and the list will have to be provided to IRDA from time to time.
IRDAI said that IPPB may have tie-ups with several insurers as allowed under the IRDAI (Registration of Corporate Agents) Regulations, 2015 for distributing insurance products through the postmen and grameen dak sevaks of Department
IPPB will be responsible for the following:
- Training and certification of postmen and grameen dak sevaks of the
- 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
- put in place a system to identify the postman and grameen dak sevak who has sold an insurance policy to the prospect Department of Posts on the lines of Point of Sales Person