Insurance regulator IRDAI today allowed Points of Sale (PoS) and Common Services Centre (CSC) to sell government insurance schemes like Pradhan Mantri Fasal Bima Yojana and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
As regards crop insurance, by allowing POS to sell the product without sum insured limit, all we mean is that the POS can sell government sponsored crop insurance schemes offered by an insurer which covers the crop of the policyholder, over the area of the insured field, IRDAI said in a notification.
However, the sum insured or premium rate per crop/unit area/tree, as the case may be, remains what is notified under the respective government sponsored insurance schemes without any change, Insurance Regulatory and Development Authority of India (IRDAI) said.
The same was allowed for CSC-SPV through a separate notification. It will help widen distribution network for such schemes.
While PMSBY is linked to the bank account and currently only banks sell the product by debiting directly the account of the insured, there may be other government sponsored insurance schemes which are allowed to be marketed through agents or insurance intermediaries.
In such cases the CSC-SPV can solicit and market the schemes for which they will be entitled to commission or remuneration as per norms, it said.
