Paytm withdraws application for general insurance licence

Its decision will save the company INR950 crores.

Paytm has announced a strategic shift for its insurance business, focusing on distribution through its subsidiary, Paytm Insurance Broking (PIBPL), which targets consumers, small merchants, and SMEs. 

As part of this strategy, Paytm General Insurance (PGIL), an associate of One97 Communications, will move away from capital-intensive insurance manufacturing and withdraw its general insurance license application. 

"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.” a Paytm spokesperson said in a company filing.

This move will allow One97 Communications to conserve INR950 crores previously earmarked for PGIL's investment.

PIBPL has strengthened its partnerships with major insurance companies like Digit, Acko, ICICI Lombard, New India, Bajaj Allianz, TATA AIG, Aditya Birla Health, and Universal Sompo. 

It offers embedded insurance products that seamlessly integrate into users' lives, providing coverage for health, life, vehicle, mobile screen damage, loss from cyber fraud, EMI protection, and job loss. 

Additionally, it provides insurance covers for merchants across India, including shop, business interruption, and health insurance, ensuring business continuity.