Paytm withdraws general insurance licence application; to focus on distribution-only model

Paytm General Insurance Ltd (PGIL), an associate of One 97 Communications Ltd, withdrew its general insurance license application with IRDAI, opting for a distribution-only model. This follows Paytm's decision to shift its small-ticket personal loan business similarly. \r

The move allows the parent company to save Rs 950 crore earmarked for PGIL investment. In May 2022, One 97 Communications planned to increase its stake in PGIL to 74% and apply for a general insurance license. The decision came after the abandonment of its bid to acquire Raheja QBE General Insurance. \r

Paytm aims to enhance insurance distribution through its subsidiary, Paytm Insurance Broking Pvt Ltd, focusing on small-ticket insurance products. It also reinforces partnerships with various insurance companies. Paytm's Q4 FY24 losses widened to Rs 550 crore, impacted partially by RBI's actions against Paytm Payments Bank.