Paytm customers will now be able to buy a variety of insurance products on the application itself.
One97 Communications, which owns financial services platform Paytm, on March 3 announced that its wholly-owned subsidiary Paytm Insurance Broking has got a composite insurance broker license from Insurance Regulatory and Development Authority of India (IRDAI).
This means that Paytm can now sell products of life and general insurance companies on its platform.
Till now, Paytm was distributing small ticket-sized policies to customers as a corporate agent. With the insurance broking license, the payments platform will be able to offer more products to customers. A corporate agent is only allowed to tie-up with three insurers each in life, non-life and health categories. Insurance brokers do not have such restrictions.
In a statement, the company said that its broking subsidiary will now offer insurance products across four categories including two-wheeler, four-wheeler, health and life.
Paytm Insurance has tied up with 20 insurance firms. It will partner with 30 more insurers over the in India and would be integrating with next few weeks.
The company would also provide policy management and claim services for customers.
Other than online initiatives, the company would be leveraging on its 16 million-strong merchant partner base to sell its insurance products all over the country.
The company is in the process of shortlisting merchant partners who would be trained to become Point of Sales Persons (PoSP). The company plans to rope in 2 lakh such PoSPs this year.
"This would enable us to offer a wider suite of product offerings from a large set of insurance partners. The potential of the insurance business is huge as the market is still under-penetrated in India. Paytm Insurance is going to give millions of our users the option of buying bite-sized insurance products at a competitive price, said Amit Nayyar, President- Paytm.
The company had surrendered its corporate agent license to get regulatory approval to become an insurance broker.
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