Inclusion push: Fuel pumps may sell insurance

MUMBAI: Petrol pumps and gas dealerships may start distributing standardised insurance products if the sector regulator’s efforts are successful. There are nearly 61,000 fuel pumps in the country and almost 25,000 LPG dealers who can add to the insurance distribution capability in smaller towns and even villages.
Additionally, the regulator Irdai has already directed companies to come out with simple standardised products on health and term insurance and will shortly come out with guidelines for standard annuity products, which can be brought without much advice.
Delivering the inaugural address at the 22nd Annual C D Deshmukh Memorial Seminar, Irdai chairman S C Khuntia said that the regulator was in talks with the ministry of petroleum to permit distribution of insurance at fuel pumps and gas agencies. He said that the idea was to enable them to sell simple insurance products to narrow the protection gap in the country.
Khuntia also urged more life insurance companies to go public and list themselves on stock exchanges as the disclosures would increase transparency and build trust. “Insurance is a social protection scheme based on trust, and increasing trust will help improve insurance penetration,” he said.