Paytm withdraws its general insurance licence application with IRDAI

by Psu Connect
Date: 27-05-24

The company aims to offer small ticket, innovative insurance solutions across various general insurance categories, including Health, Life, Motor, Shop, and Gadgets.

Paytm withdraws its general insurance licence application with IRDAI

Fintech Insurance firm and associate of One 97 Communications Limited, Paytm General Insurance Limited has announced withdrawing its general insurance application with IRDAI.

According to the exchange filing, Paytm has announced that its wholly-owned subsidiary, Paytm Insurance Broking Private Ltd. (PIBPL), has intensified its focus on insurance distribution to Paytm consumers and small merchants & SMEs.

As India’s leading financial services distribution platform focuses on growing its insurance distribution business, Paytm General Insurance Ltd (PGIL), an associate entity of One97 Communications, will be moving its focus away from the capital-intensive insurance manufacturing business and withdrawing its general insurance license application.

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This will also enable OCL to conserve cash of Rs 950 crores, which was earmarked for investment in PGIL. PIBPL has also strengthened its partnerships with prominent insurance companies such as Digit, Acko, ICICI Lombard, New India, Bajaj Allianz, TATA AIG, Aditya Birla Health, and Universal Sompo among others.

It offers embedded insurance products that seamlessly integrate into users' lives, and provide coverage for health, life, vehicle, mobile screen damage, loss from cyber fraud, EMI protection, and job loss. It also provides insurance covers for merchants pan-India including shop, business interruption, and health insurance ensuring business continuity.

Paytm spokesperson said, "PIBPL brings affordable, easy to understand insurance products to our consumers and merchants, making their everyday lives easier. By focusing on small-ticket general insurance offerings and leveraging the strength of Paytm’s distribution, we are committed to increase general insurance penetration to a wider audience.” Paytm’s pioneering efforts in payments for small merchants and innovation in mobile payments are instrumental in driving higher penetration of affordable digital financial services in India.