CSC TARANG

(A SILENT REVOLUTION IN RURAL ENTREPRENEURSHIP)

CSC Monthly e-Magazine

@ CSC e-Governance Services India Limited Publication
Vol II - Issue 42 | May, 2020

INSURING THE UNREACHED

Insurance service through CSC
 INSURANCE THROUGH CSC

MESSAGE
FROM CEO
Dr. Dinesh Tyagi

Insurance – An opportunity for Growth for CSCs

Despite a number of schemes launched by the Government and focused push by Hon' Prime
Minister Shri Narendra Modi, the insurance figures for health and life coverage are much below the
desired level, especially among the rural and semi-urban communi es.
According to the NSO report, only 14% of the rural popula on and 19% of the urban popula on has
health expenditure coverage and a meagre 1% of rural popula on said they were covered by health
insurance arranged by Government/PSUs /Employer-supported health protec on schemes, etc.
The unmet need, growing incomes and enabling schemes, have together created an opportunity
for expansion of insurance coverage that will not only benefit communi es but also provide
business opportuni es for CSC which can provide last mile connec vity through sales and
awareness outreach.
With the last mile network of 3.71 lakh, of which 2.74 lakh are in Gram Panchayats, CSCs can help
rural ci zens gain access to insurance, thereby protec ng their life, health, farm and ca le.
In rural areas, the rate of insurance policies not being renewed and lapsing is very high and this
leaves the insured vulnerable and unable to use the benefits in mes of need. This is due to general
lack of awareness about the due dates for the payment of the premium amount. CSCs through the
renewal premium service can keep a track of this and help the rural popula on benefit from regular
payment of premiums.
This Financial Year 2019-20 has seen a sterling performance by the 80,000 CSCs providing insurance
services. They have collected a premium of Rs. 38336.97 lakh from the sale of new policies to 12,
91,930 customers. During the same period, these VLEs have collected insurance renewal premium
worth Rs. 72,875.13 lakh from 18,41,254 exis ng life policy holders. Imagine the impact and
outreach that will be achieved both in terms of coverage and revenue if 3.71 lakh CSCs that are
func onal across the country start providing similar services. The opportunity for growth is truly
limitless!

01
 INSURANCE THROUGH CSC

INTRODUCTION

The life and property of an individual are surrounded by the risk of death, disability or destruc on.
These risks may result in financial or other losses. Insurance is a means of protec on from such
losses.

Insurance policy is a legal agreement between the insurance company (insurer) and the individual
(insured). The insurance policy has details about the condi ons and circumstances under which the
insurance company will pay out the insurance amount to either the insured person or the
nominees. Insurance protects the individual against unforeseen financial burden arising out of
perils men oned in the contract.

Categories of Insurance:
1) Life Insurance - The Insurance policy promises to pay a pre-decided amount in case of death of
the insured person or in case of survival of the insured person up to a pre-decided me period
(given that the Insurance policy is in force and premiums are con nuously paid by the policy
holder).

2) Life Insurance Renewal - Life Insurance policy is a long-term contract and needs to be renewed by
con nuous payment of Premium, called Renewal Premium, to keep the policy in force.

3) General Insurance -These are typically short-term contracts of 1 year. General Insurance
products include:
Ÿ Motor Insurance
Ÿ Fire /Property insurance
Ÿ Travel Insurance
Ÿ Personal Accident
Ÿ Commercial Insurance (Marine/Liability/Cyber Risk, etc.)
Ÿ
4) Health Insurance - Health Insurance policies are typically short term (1 year) contracts. They
cover medical expenses incurred by the Insured in case of hospitaliza on due to unforeseen
circumstances.

5) Crop Insurance - It acts as a safeguard for farmer income and indemnifies crop loss due to
uncertain weather condi ons.

02
 INSURANCE THROUGH CSC

INSURANCE SERVICE THROUGH CSC

In September 2013, the Insurance Regulatory and Development Authority of India (IRDAI) granted
CSC SPV with a license to work as an Authorized Intermediary to market specific insurance products
through the Rural Authorized Persons (RAPs) under the Common Services Centers (CSC) scheme.

The IRDAI license permi ed both Life and non-Life insurers to market Insurance products and
services through the last mile network of CSC with the objec ve to significantly expand insurance
penetra on in rural areas and bring in financial inclusion. Under this, once the Village Level
Entrepreneur passed RAP cer fica on, a license was granted to him/her for carrying out Insurance
business. A er the VLE was licensed as a RAP he/she could sell Insurance policy of any Insurance
company with which CSC SPV has an agreement.

In 2019, IRDAI no fied that under Insurance Services by Common Services Centers, VLEs - Insurance
(VLE-Ins) can solicit Insurance business through Digital Seva Portal, a er obtaining training,
cer fica on and license. All Point of Sales (POS) products of Insurance companies can now be
integrated on Digital Seva Portal for selling through RAPs or VLE-Insurance.

Partner Insurance Companies

CSC SPV has executed Agreements with 42 insurance companies through which the RAP / VLE INS
are selling Insurance products:

03
 INSURANCE THROUGH CSC

Insurance Product Available on Digital Seva Portal

The following Insurance products are available to RAPs :

Ÿ Life Insurance,
Ÿ Motor Insurance
Ÿ Crop Insurance
Ÿ Fire Insurance
Ÿ Personal Accident Insurance
Ÿ Farmer Package Policy
Ÿ Health Insurance
Ÿ Travel Insurance
Ÿ Renewal Insurance

04
 INSURANCE THROUGH CSC

Product-wise Commission Structure

05
 INSURANCE THROUGH CSC

INSURANCE PREMIUM COLLECTION – NEW PRODUCT SALES

In the financial year 2019-20 (upto January 2020), VLEs have collected premium of Rs. 38336.97
from sale of new policies to 12,91,930 customers through CSC channel.

In the financial year 2018-19, insurance premium worth Rs. 10,217.06 lakh was collected by VLEs
from sales of new policies to 6,37,850 customers.

In the financial year 2017-18, insurance premium worth Rs. 4,869.54 lakh was collected by VLEs
from sales of new policies to 3,44,255 customers.

06
 INSURANCE THROUGH CSC

RENEWAL PREMIUM COLLECTION

During the ten months of the current financial year 2019-20, insurance renewal premium worth Rs
72,875.13 lakh were collected by VLEs from 18,41,254 exis ng life policy holders through CSC
channel.

In the financial year 2018-19, renewal premium worth Rs. 65036.71 lakh were collected by the VLEs
for renewal of policies of 16,60,387 exis ng customers.

In the Financial Year 2017-18, renewal premium worth Rs. 43348.80 lakh were collected by the VLEs
for renewal of policies of 11,48,148 exis ng customers.

07
 INSURANCE THROUGH CSC

IN CONVERSATION

Mr. Rushabh Gandhi

Deputy CEO,
IndiaFirst Life Insurance Limited

1. The penetra on of Insurance in rural India is very low.

What strategy has your company adopted to address this?

India is an under penetrated life insurance market with 70%

of the popula on living in rural areas. We are, currently,
grappling with low penetra on levels and a large protec on

gap. There are evident challenges in the fundamental framework such as rela vely higher
cost of administering micro-insurance, affordability of plans “insurance-in-sachet”,
accessibility to plans with wider distribu on channels among others. To reach out to the last
mile customers across every pin-code in the country, IndiaFirst Life's focus is on product
innova ons and distribu on innova on.
The company's three-pronged strategy to enhance insurance penetra on in rural India
includes the below:
Ÿ IndiaFirst Life operates at full thro le on execu on of micro-insurance ini a ve Pradhan
Mantri Jeevan Jyo Bima Yojana (PMJJBY) PMJJBY through partner banks (promoters and
RRBs) is securing and renewing over 45.86 lakh lives this FY year as of February 2020.
IndiaFirst Life has partnered with 8 RRBs having a network of over 3,300 branches. This
gives the exis ng and poten al rural customers of IndiaFirst Life a wider network of touch-
points to service their needs.

Ÿ “Insurance-in-sachet” is an effec ve method for risk protec on of the uninsured.

IndiaFirst Life ensures its enablement across lakhs of “kirana” shops in the hinterlands.
This is achieved by empanelling retail distributors as corporate agents, e-ups with other
like-minded organiza ons. Keeping the costs low and reachability high, IndiaFirst Life
provides “need-based” products suitable for rural India through customized PoS channels,
digital sales and other strategic partnerships.

08
 INSURANCE THROUGH CSC

IN CONVERSATION

Ÿ IndiaFirst Life is commi ed toward providing risk protec on to rural India. We understand
the importance of building strong partnerships for prolifera on of affordable micro
insurance and protec on insurance. Therefore, IndiaFirst life has partnered with the
Common Services Centers (CSC), which is an integral part of the “Digital India” ini a ve led
by the Government of India's Ministry of Electronics and Informa on Technology (MeitY).
It is gra fying for IndiaFirst Life to be able to reach out to the masses and underserved
customers with simple, easily accessed risk management solu ons, by leveraging the
possibili es offered by the network of over 3,65,000 centres run by a premium and reliable
body as the CSC.

2. What kind of opportuni es do you see for CSC and the Insurance companies in rural
India?
IndiaFirst Life has been the front-runner in op mising the CSC network. The organiza on has
its reach in the remotest areas of the na on and benefi ed the lowest stratum of the society.
Offering seamless insurance service and bespoke products to the rural ci zenry through CSC
distribu on network has the poten al to evolve as a compelling proposi on. We can do so
much with technologically enabled, digital solu ons and bite sized products in fulfilling the
customers' needs whilst giving them the flexibility in premium payments. The 9% stake
purchased by IndiaFirst Life in CSC e-Governance Services India Ltd. demonstrates our
commitment toward ensuring risk protec on to all sec ons of the society.

Currently, CSCs have around 3.65 lakh Village Level Entrepreneurs (VLEs) opera ng under CSC
umbrella. Of these, 69,000 VLEs have become well trained Rural Authorized Persons (RAPs)
who are authorized to sell insurance solu ons. IndiaFirst Life has integrated with the CSC
Portal to enable seamless sales of its life insurance offerings through RAPs – who are
supported by an inclusive sales structure within IndiaFirst Life Insurance.

3. What role do you foresee for CSC to penetrate the rural market?
CSC is a massive and powerful tool that helps insurers reach every village, gram panchayat
and block level in India. Presently, CSC covers close to 27,000 lives annually. This can go up to 1
million every year, if every cer fied person covers at least one life every month. The dream of
'Insurance for All” can be realized at a faster pace with customised products for rural India.

09
 INSURANCE THROUGH CSC

IN CONVERSATION

For example, 'IndiaFirst Life CSC “Insurance Khata” has successfully insured over 62,000 lives
under this model. Risk protec on for all sec ons of society is impera ve. IndiaFirst Life
believes that the service mo o of CSC-SPV will certainly aid in expanding the extent of the
safety net of insurance to the farthest corners of India.
4.In rural India, majority of people are unaware about benefits of health insurance. How
does your company plan to fill this gap?
As life insurers, IndiaFirst Life has the wherewithal to manage diverse needs of customers.
Therefore, Health Insurance is a natural extension for us to reach out to exis ng and poten al
customers. We are extremely adept at long-term risk-management and managing
investment risks. Construc ve compe on has almost always resulted in a posi ve customer
outcome, and we see the same thing happening yet again. IndiaFirst Life Insurance, as and
when approved by the regulator, would like to offer both, benefit and reimbursement
products. Presently, our benefit products, such as Cri cal Illness and Hospi-Cash are at
various stages of approval with the regulator.
5. How can ICT (Informa on Communica on Technology) play a pivotal role in Insurance
sector in rural India?
In today's age, digital is driving buying decisions. Customers are expec ng shorter turn-
around- me, on-the-move interac ons with insurers, and all relevant informa on at a swipe
or touch. Disrup on is happening with insurers innova ng newer ways to connect with their
customers, especially the millennial. At grass-root level, prolifera on of mobile
communica on aided by widespread adop on of smart-phone based technology has
simplified last mile sales and fulfillment processes. The products and processes are in
customers' pockets in a handset. Addi onally, the customers get on-the-go consulta ons and
speedy claim se lements with transparency in transac ons; insurer earns customer faith and
advocacy. As an industry, the goal is to iden fy avenues to digitalise and automate processes
across the value chain, while making life insurance proposi ons accessible and friendly,
across social spectrums. Usage of Machine Learning and Analy cs in predic ve fraud analysis
with scien fic, sophis cated parameters will help nip frauds in the bud. Adop on of emerging
technologies will help players understand customers be er; provide unique and customized
solu ons in a seamless manner. These factors will influence the sustainability and success of
insurance players in mes to come.

10
 INSURANCE THROUGH CSC

IN CONVERSATION

Mr. Ashish Agrawal

Senior VP & Head, Agri Business,
Bajaj Allianz General Insurance

1. The penetra on of Insurance in rural India is very low.

What strategy has your company adopted to address this?
The main reason for low insurance penetra on in the rural
areas is difficulty in reaching out to the customers, high
distribu on cost and low awareness of the insurance
products amongst the rural community. These challenges

have come down in the recent years due to the advancement in technology and increasing
use of the mobile phones in rural areas. We are leveraging all these developments to launch
customized rural specific insurance products and to create awareness and importance of the
insurance to everyone. We are offering insurance products in the rural areas through the vast
network of CSC and also through the government ini ated insurance programmes like
Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Suraksha Bima Yojana and AYUSH
scheme, etc.
2. What kind of opportuni es do you see for CSC and the Insurance companies in rural
India?
The presence of CSC in the remotest corner of the country and its connec vity through ICT are
the major strengths which brings huge poten al and opportunity to act as a one of the biggest
distribu on channels for the insurance companies in India. The increasing awareness and
educa on level of the rural customers and increasing Government focus to provide financial
security to the farmers would also bring lot of opportunity for the CSC and insurance
companies to work together and provide benefits of insurance products to the rural
customers.

3. What role do you foresee for CSC to penetrate the rural market?
The CSC has bridged the gap between the service and market availability in the recent pasts.
Many private as well as Government agencies have launched their services in the rural areas

11
 INSURANCE THROUGH CSC

IN CONVERSATION

through the CSC network due to which it has got a en on, trust and confidence of the rural
customers. I think the CSC can act as a facilitator, influencer and provider to increase
penetra on in the rural market.

4. In rural India, majority of people are unaware about benefits of health insurance. How
does your company plan to fill this gap?
Rural customers are unaware about the benefits of health insurance because they have not
yet experienced it. It is always a challenge for an insurance company to launch rural specific
health insurance product because of unavailability of the cashless treatment facility and
proper healthcare centers in the villages. With the launch of Government subsidized health
insurance schemes, it has become affordable now for the rural customer to get the benefits of
health insurance. As a company we are par cipa ng in the health programmes of various
State governments. Also, we are going to introduce our retail health insurance product very
soon through the CSC channel.

5. How can ICT play a pivotal role in Insurance sector in rural India?
ICT is the major enabler to reach out to the rural customers and provide insurance products in
a cost effec ve manner. The rural customers have started ge ng informa on and services in
a mely manner now which has actually helped in increasing the confidence and trust of the
rural customers towards the insurance products. In my opinion, ICT enabled CSC are going to
become the largest channel for insurance product and service distribu on in the near future.

12
 INSURANCE THROUGH CSC

IN CONVERSATION

Mr. Manish Misra

Head, Govt. & Rural Business Group,
ICICI Lombard

1. The penetra on of Insurance in rural India is very low.

What strategy has your company adapted to address this?
Indeed, insurance penetra on remains remarkably low
across rural India. As a leading player in the Indian insurance
sector, we are commi ed to the vision of maximizing
financial inclusion. We are focusing on reaching out and

empowering channels opera ng out of remote loca ons with an understanding of various
insurance products.
It is a strategic move to establish a knowledge ecosystem and drive inclusion as product
informa on and awareness transmits to poten al customers through these channels. Of
course, technology has a significant role to play in our endeavor, and we are working on user-
friendly and simple yet comprehensive solu ons that can be easily leveraged by our rural
channel partners.
To summarize, our strategy is to improve the access to insurance products for rural India
though awareness crea on, technology leverage, product innova on and seamless public-
private collabora on.
2. What kind of opportuni es do you see for CSC and the Insurance companies in rural
India?
The a empt to drive insurance penetra on in rural India through Common Service Centers
(CSC), manned by Rural Authorized Persons (RAPs) has been a revolu onary move. Solici ng
businesses through RAPs, who are duly trained as per the specifica ons of the Insurance
Regulatory and Development Authority of India (IRDAI), in insurance products and associated
topics allows us to connect with communi es at an unprecedented level. The recent move to
permit VLEs to sell insurance products in the hinterland would further bolster the efforts
towards increasing insurance penetra on.

13
 INSURANCE THROUGH CSC

IN CONVERSATION

These RAPs and VLEs, being residents and speaking the local dialect, have the trust of the
local populace and are well versed with the risks unique to their own communi es.
Empowered with the insurance product knowledge, they not only provide relevant advisory
to the rural customers but also provide crucial feedback to insurers on product design and risk
coverage.
3. What role do you foresee for CSC to penetrate the rural market?
CSC provides a centralized collabora ve framework for the delivery of e-governance services
to rural ci zens, thereby contribu ng to the mandate of a digital and financially inclusive
India. Local presence of CSC and the social credibility of Village Level Entrepreneurs (VLEs)
who operate them, dovetailed with the brand value of the insurers infuse a sense of
confidence among the rural popula on and drives greater financial inclusion confidence
among the rural popula on and drives greater financial inclusion. In par cular, this trust
makes it easy for us to reach out to them with relevant risk management solu ons to
safeguard them against uncertain es. During the year, we are focused on increasing CSC
engagement and simplifying the policy issuance process to further increase insurance
penetra on in rural India.
4. In rural India, the majority of people are unaware of the benefits of health insurance.
How does your company plan to fill this gap?
The informa on divide has been one of the cardinal factors responsible for the abysmal
health insurance penetra on across rural India. It is well known that unan cipated health
expenses are one of the leading causes of rural indebtedness. Our response to bridge the gap
needs to be crea ve, considering various ground-level factors like low language proficiency,
limited access to higher educa on, affordability etc. For this, we have launched health
insurance awareness campaigns that incorporate informa ve audio and video messages and
targets mely and comprehensive resolu on of queries regarding health insurance products.
We have also launched complementary products like HOSPIFUND, which is a benefit policy
and offers fixed daily payout in the event of hospitaliza on.
In our campaigns, we are highligh ng the financial benefits of health insurance policies to
have be er appeal and a more profound impact on the rural insurance customer psyche. It
includes making them aware of the high medical costs and the inconveniences associated

14
 INSURANCE THROUGH CSC

IN CONVERSATION

with the out of pocket financing of healthcare expenses and the benefits they can avail
through health insurance scheme coverages. Overall, our campaigns are geared to
underscore the importance of health insurance in the lives of people.

5. How can ICT play a pivotal role in rural India?

The role of ICT as a force mul plier and a tool for produc vity in various service domains has
already been established by CSC in rural India. The unmatched poten al of ICT to disseminate
knowledge, educate and promote social interac on at a low cost has profound implica ons
for the agro-dominated economy of rural India.

Today, over 60% of the farmers remain beyond the scope of any agricultural extension agency
or func onary. Further, in a world threatened with shi ing clima c pa erns and extreme
weather events like drought and flood, farmers must have access to be er predic ons, early
warnings, and informa on on mi ga on measures.

It is here where ICT comes into play. Agricultural Extension ini a ves riding on top of a digital
backbone can revolu onize how essen al data, alerts, informa on, and services are trickled
down to the very grassroots level to reach the llers of the soil. Further, leveraging ICT as a
communica on channel not only ensures the seamless flow of informa on across the
agricultural ecosystem but also guarantees that it reaches the frontline exactly when and
where is it is needed.

15
 INSURANCE THROUGH CSC

BECOMING A RAP

Rural Authorized Person (RAP) is an individual who has a license to solicit or nego ate an Insurance
policy with a client on behalf of the insurance companies. VLEs can now become Rural Authorized
Person (RAP) to be able to sell Insurance products through Digital Seva Portal. To become a RAP, VLE
has to complete the RAP training modules and pass the examina on conducted by NIELIT. Till
January 2020, in total 1,94,251 VLEs have registered for RAP Licence. Of them, 69,379 VLEs have
cleared the RAP examina on.

Benefits of Becoming a RAP

· Online hassle free licensing
· Exis ng agents of Insurance companies can have RAP license
· Over the counter policy issuance
· Access to mul ple companies under one portal
· Instant commission for all products sold
· VLEs can sell both Life & General Insurance products

Steps for Becoming a Licensed RAP

1. Register for RAP through www.insurance.csc.gov.in
2. Pay a fees of Rs. 350 towards Examina on & Licensing
3. VLE gets Login ID & Password for RAP training from CSC Insurance team
4. VLE to complete online modules. Cer ficate shall be issued a er comple on of online modules
5. VLE gets in ma on for the date of RAP examina on from Insurance team
6. VLE to appear for the exam on the scheduled date/ me at your CSC
7. VLE clears the examina on and gets IRDA license
8. CSC SPV signs agreement with VLE for insurance sales
9. Product training by Insurance companies
10.CSC SPV ac vates Insurance services for the licensed VLE

16
 INSURANCE THROUGH CSC

RAP Registra on

17
 INSURANCE THROUGH CSC

RAP Fee Payment

Once the VLE submits the form, he/she will be re-directed to page for Payment where the VLE can
make the payment of Rs. 350 towards Examina on & Licensing.

The VLE can also update their details a er filling the Registra on form (like uploading documents /
Photograph, etc…) by clicking on VLE INFORMATION UPDATE

18
 INSURANCE THROUGH CSC

RAP Insurance Training

In order to become a RAP, every VLE has to complete 20 hours of online training. The training
content has been created by Insurance Ins tute of India. The Learning Management System (LMS)
has 20 modules and once the modules are completed. The VLEs can undergo self assessment at the
end of each module.

CSC SPV has uploaded 20 hours of Training content on the LMS. The content is available in English,
Hindi, Gujara & Bengali.

19
 INSURANCE THROUGH CSC

RAP Online Examina on

NIELIT has been approved by IRDAI to conduct online RAP Exam for the VLEs at their CSC through
online proctoring. This new development has significantly increased the percentage of VLEs
appearing for the exam. Once the VLE registers for RAP, pays the fee and undergoes the online
training, he/she can give the exam any day from Monday to Friday between 10:00 AM to 4:00 PM
(Except Government Holidays).

20
INSURANCE THROUGH CSC

21
 INSURANCE THROUGH CSC

Licensed RAP
As on February 2020, 70,301 VLEs have received their license as RAP. The state-wise breakup of the
RAPs licensed are as follows:

22
 INSURANCE THROUGH CSC

VLE – INSURANCE REGISTRATION

As per the new CPSE No fica on, IRDAI has authorized all CSC VLEs to become VLE-INS (Point of
Sale). To become a VLE-Insurance, VLE needs to register on VLE-INS portal link:
h p://15.206.9.238/vleinsurance/

23
 INSURANCE THROUGH CSC

Following the launch of VLE Insurance domain, as many as 51,755 VLEs have registered on the
portal. As on February 2020, there are total 11,780 VLEs who are licensed as VLE-INS. The state-wise
breakup of the registered and licensed VLE-INS is as follows:

24
 INSURANCE THROUGH CSC

VLE-INS Training and Cer fica on

In order become a VLE-INS, every registered VLE has to complete 15 hours of online training. The
training content has been created by Insurance Ins tute of India. The Learning Management
System (LMS) has 15 modules. The content is available in English, Hindi, Gujara & Bengali.

Once the training is completed, the exam link will be ac ve and he/she can appear for online exam,
and just need 10 marks out of25.

A er VLE clears the exam, he/she just needs to accept the Terms and Condi ons and upload his/her
signature (in JPG format) for License genera on. His/her license is automa cally generated.

25
 INSURANCE THROUGH CSC

CROP INSURANCE - PRADHAN MANTRI FASAL BIMA YOJANA

Crop Insurance is an important risk mi ga on tool to overcome the risks in agriculture sector like
earthquakes, tsunami, cyclones, floods, landslides, hailstorm and drought etc. Crop Insurance was
launched in India, in 1985 and has been consistently modified to support farmers' needs.
The Pradhan Mantri FasalBima Yojana (PMFBY) is a flagship scheme launched by the Government of
India in 2016 on the theme of One-Na on-One-Scheme. The scheme is the third largest crop
insurance scheme in the world in terms of premium. PMFBY is currently implemented in 27 States
and Union Territories. It majorly aims at protec ng farmers' investment from natural adversity as
well as ensures con nued flow of capital within the agricultural economy. The scheme envisages
coverage of maximum number of farmers in the ambit of crop insurance.
The scheme has been recently revamped as per the Union Cabinet's approval issue on February 19,
2020 wherein it has been made voluntary for all farmers. Earlier it was mandatory for loanee
farmers who have availed KCC and other seasonal agricultural opera onal loans. Subsequently, role
of CSCs will be very vital in shouldering addi onal load of farmer enrolment and enhancing the
outreach of the scheme.
The Insurance Regulatory and Development Authority of India (IRDAI) and Ministry of Agriculture
authorized CSC SPV to enroll farmers across India under PMFBY/RWBCIS. Presently about 45,000
CSCs are engaged in implementa on of crop insurance scheme- PMFBY/RWBCIS.
All empanelled Insurance Companies are compulsorily required to enter into an agreement with
CSC for enrolment of farmers and pay service charges as fixed by DAC&FW, GOI per farmer per
village per season.
During the Crop Season of 2019-20 (star ng July 2019 and ll January 2020), in total 75.31 lakh
applica ons for a total premium of Rs. 752.05 crore have been submi ed by farmers through CSCs
under PMFBY.
During the Crop Season of 2018-19, 102.001 lakh applica ons for a total premium of Rs. 530.73
crore have been submi ed by farmers through CSCs.
During the Crop Season of 2017-18, 10.45 lakh Applica ons for total premium of Rs. 54.51 crore
were submi ed by farmers through CSCs.

26
 INSURANCE THROUGH CSC

MENTORSHIP PROGRAMME
Although an es mated 70,000 cer fied RAPs /VLE INS are currently registered with CSC, but only
about 30,000 are actually carrying out Insurance business. The Insurance Mentorship Programme
(IMP) is envisaged to increase the share of insurance revenue in the overall earning of the VLE. It is
designed to encourage the VLE to increase insurance business by helping them understand the
business and benefits.

This programme is being rolled out in partnership with the Insurance companies – each of whom
will choose 20 districts where they want to run this programme. These districts will be dis nct – as
in, one district will only have one Insurance Company mentoring the VLEs. The District Coordinator
of the Insurance Company will conduct a training session to educate the VLEs about Products,
Benefits & Sales techniques. Post the session he / she will make a roster of visits for each VLE to
ensure that each VLE is visited at least once a fortnight.

The CSC State Heads will provide their leadership to the programme. The respec ve DM / DC of CSC
SPV will spearhead it and provide guidance in mo va ng / handholding the VLEs and resolving their
concerns; as well as support the Insurance Companies and their District Managers in carrying out
the mentorship programme.

27
 INSURANCE THROUGH CSC

Methodology & Proposed Plan

1. Selec on of Poten al Districts – As men oned, all districts in the country will be covered
under the plan in a phased manner. In Phase 1, 120 – 125 districts have been selected by six
insurance companies across 10 States. This means that each company has about 20 districts where
they will mentor the CSC VLEs on increasing the insurance business.

2. Selec on of VLEs – Only RAP or VLE INS cer fied VLEs will be selected for this ini a ve,
based on their performance in Insurance and other CSC SPV services. The base criteria will be that
they do good business overall for CSC SPV. As men oned above, roughly 50% will be VLEs who do no
insurance business at all. Another 40% will be VLEs who have a premium collec on of less than Rs.
20,000 per year & another 10% will be VLEs who have a premium collec on of between Rs. 20,000
& Rs. 40,000 per year. Within all these sets, women VLEs will be given preference.

3. Communica on & Feedback – There will be mul ple touch points with the VLEs

a. Prior to Implementa on – Calling would be done based on a pre-defined

ques onnaire by the Insurance Company concerned & CSC SPV resources. This would gauge
the awareness & interest levels of the VLEs. In case the VLE indicates that he / she is not
interested in selling insurance / par cipa on in the programme, then another VLE may be
included instead. If at a later date they want to par cipate, they can do so a er in ma ng
CSC SPV.

b. During the programme – A call will be made to all the par cipants on a fortnightly
basis to take informa on on the following parameters:
i. Adherence to the visit schedule by DC of Insurance Company
ii. Efficacy of the programme
iii. Resolu on of any concerns regarding the programme / product
iv. Premium collec on over the period (pre-defined)
c. A er the programme – Post programme feedback, measurement of progress and
address concerns if any. VLEs will also be informed of all post training support mechanisms
such as Call center number, Training collateral availability, escala on / support contact points
etc.

4. Provisioning of collaterals – Branding / Marke ng collaterals will be created for Point of Sale
such as Banners, Brochures, Videos, etc. These will support the VLEs in their efforts to promote the
Insurance business by highligh ng product benefits, ease of availability, hassle free transac ons,
etc.

28
 INSURANCE THROUGH CSC

5. Training Implementa on – The Insurance Company District Coordinator will conduct a

training workshop with the selected VLEs and educate them on the following:
a. About the Insurance Company
b. Insurance Products
c. Product Benefits
i. For the end consumer
ii. For the VLE
d. Sales Techniques
i. How to iden fy the avenues for sales
ii. How to sell
iii. Priori zing products – me spent vs returns

6. Usage of digital and social media pla orms – Social media pla orms such as YouTube,
Facebook, Twi er, etc. will be ac vely used for building awareness as well as for refreshing training
inputs.

29
 INSURANCE THROUGH CSC

Top Performing RAPs

Our top performing RAPs who have done the highest premium collec on for 2019-20 are listed
below:

Chanda Pasha is a resident of Gangavathi , Koppal district in

Karnataka. He has studied ll 12th standard. He joined CSC as a
Village Level Entrepreneur (VLE) in 2016 and qualified for RAP
service in 2017. His prior knowledge and experience as a general
insurance agent helped him in Insurance business as a RAP.
Receiving an award by the Hon' Minister of Electronics and
Informa on Technology on winning the Fes val Carnival Contest
VLE Chanda Pasha helped him earn recogni on and praise among his peers in his
district. He has won thrice RAP Contest conducted by CSC in
2017, 2018 & 2019 respec vely. Apart from insurance service,
Chanda Pasha also provides all other services through his CSC,
namely, bus cke ng, PMGDISHA, Seva Sindhu services, NPS,
PMSYM, PMKMY, Ayushman Bharat, u lity bill payment through
BBPS, PAN Card, etc.

A resident of Katgarh, Gulab Bari, Moradabad district of U ar

Pradesh, Pankaj Saini is a graduate in Arts. He started his CSC last
year and became a RAP in the same year. He is also providing all
other services to ci zens through his CSC, such as PMGDISHA,
Seva Sindhu , NPS, PMSYM, PMKMY, Ayushman Bharat, BBPS Bill
VLE Pankaj Saini Pay, PAN Card, etc.

30
 INSURANCE THROUGH CSC

VLE Neha Srivastava resides in Transport Nagar, Prayagraj district,

U ar Pradesh. She has done her gradua on in Arts. She started
her CSC in 2017 and got qualified for RAP in 2018. She has sold
4,609 insurance policies in 2019.
VLE Neha Srivastava

A resident of Hubli in Dharwad district, Karnataka, Raju Gangasa

Metrani has studied ll 10th standard. He started his CSC in 2017
and qualified for RAP in 2018. He bagged the fi h posi on in the
RAP Contest in 2019. Along with insurance services, he also
provides other services such as IRCTC, PMGDISHA, Ayushman
Bharat, etc. Raju sold 5,825 policies in 2019.
VLE Raju Gangasa Metrani

A resident of Shivamogga district in Karnataka, Kishan Kumar is a

Civil Engineer. He came to know about CSC from one of our
partner insurance companies. He then got an opportunity to be a
VLE and started his own CSC in 2018 and also got qualified for RAP
in the same year. He also made a mark in CSC as India's top RAP as
well as top VLE in insurance in the State. He was also the
champion RAP for CSC General Insurance for the financial year
VLE Kishan Kumar K.
2019-20.

31
CSC e-Governance Services India Limited
3rd Floor, Electronics Niketan, (MeitY)
6 CGO Complex, Lodhi Road,
New Delhi - 110003