With IRDAI Nod, Paytm to now offer Insurance Policies

Paytm Insurance Broking Private Limited, a subsidiary of Paytm has secured a brokerage license from IRDAI enabling Paytm to now offer insurance products to its millions of consumers.

Crux of the Matter

For Insurance, “PayTM karo
In the beginning, it will offer insurance for four categories which are two-wheeler, four-wheeler, health, and life. Paytm has plans to leverage its 16 million merchant partner base which will function as Point of Sale Persons (POSPs), to push its insurance products. In the initial stage, it plans to get nearly 2 lakh such POSPs. The company would also be providing policy management and claim services for its customers.

At the Helm
The new subsidiary will function with three directors – Vijay Shekhar Sharma, Vikas Garg, and Amit Nayyar along with Ravinder Kumar Gupta as CEO and Amit Aggarwal as CFO.

Our entry into Insurance Broking is in line with our commitment to broaden our footprint into financial services and offering numerous and customized choices to millions of our customers. The potential of the insurance business is huge as the market is still under-penetrated in India.

– Amit Nayyar, Paytm President

PayTM following Suit?
In the insurance segment Paytm will have to face strong competition from the major player Policybazaar and the recently founded Turtlemint. In February PhonePe collaborated with Bajaj Allianz General Insurance to launch international travel insurance service for both business and leisure travelers.

Curiopedia

Paytm is an Indian e-commerce payment system and financial technology company, based out of Noida. Paytm is available in 11 Indian languages and offers online use-cases like mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies and educational institutions with the Paytm QR code. As of January 2018, Paytm is valued at $10 billion and it is planning to launch its initial public offering (IPO) in 2022. As per the company, over 7 million merchants across India use this QR code to accept payments directly into their bank account. More Info

The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India. It was constituted by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament passed by the Government of India. The agency’s headquarters are in Hyderabad, Telangana. IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India. More Info

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