Which payments major recently received insurance brokerage license from Insurance Regulatory and Authority of India (IRDAI) in 2021?

The correct answer is Paytm.

Key Points

• Paytm received the insurance brokerage license from the Insurance Regulatory and Development Authority of India (IRDAI) in 2021.
• With this license, Paytm aims to provide insurance products across categories such as health, life, and general insurance.
• Paytm Insurance Broking Pvt. Ltd. is a subsidiary of Paytm, enabling the company to expand its financial services portfolio.
• The license allows Paytm to act as a broker and assist users in comparing and purchasing insurance policies from multiple insurers.
• Paytm’s entry into the insurance sector aligns with its broader objective to offer comprehensive financial services to its customers.

Additional Information

• Insurance Regulatory and Development Authority of India (IRDAI)
  • It is an autonomous statutory body established under the Insurance Regulatory and Development Authority Act, 1999.
  • The primary objective of IRDAI is to regulate and promote the insurance and reinsurance industry in India.
  • It ensures the protection of policyholders' interests and facilitates the growth of the insurance sector.
• Insurance Broking License
  • An insurance broking license enables entities to act as intermediaries between insurers and customers.
  • Brokers help clients in comparing, selecting, and purchasing insurance policies based on their needs.
  • This license is granted by IRDAI after ensuring compliance with regulatory requirements.
• Paytm’s Financial Services Expansion
  • Paytm has diversified its offerings to include services such as banking, wealth management, and insurance.
  • Its foray into insurance broking is part of its strategy to create a robust ecosystem for digital financial services.
• Insurance Categories
  • Life Insurance: Provides financial protection to beneficiaries in the event of the insured’s death.
  • Health Insurance: Covers medical expenses incurred due to illnesses or injuries.
  • General Insurance: Includes coverage for property, vehicles, travel, and liability risks.