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Rs 2 lakh ceiling for life insurance policies sold through CSCs

Only products that are approved for it can be sold for the CSC model

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BS Reporter Mumbai
Last Updated : Apr 17 2015 | 1:17 AM IST
Life insurance policies sold through common service centres (CSCs) would have a maximum sum assured of Rs 2 lakh, according to draft regulations released by the Insurance Regulatory and Development Authority of India (Irdai).

Only products that are approved for it can be sold for the CSC model.

Motor insurance would be allowed to exceed this limit.

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In the Insurance Laws (Amendment) Act, 2015, CSCs are included in the category of intermediary and insurance intermediary.

Products like personal accident insurance, cattle insurance, agricultural pump set insurance, farmer's package policy, fire and allied peril, and dwellings insurance would be allowed to be sold through CSCs.

According to the draft norms, a special purpose vehicle for CSCs will be incorporated to facilitate the delivery of government, private and social sector services through the CSCs network.

Entrepreneurs in villages would be registered and authorised by the special purpose vehicles to operate and manage CSCs. The on-boarding charges per CSC would be Rs 5,000.

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First Published: Apr 17 2015 | 12:24 AM IST

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