: IRDAI panel proposes low cost microfinance modules; invites comments by 15 May #FinanceIndia #StockMarketNEWS IRDAI panel proposes low cost micro-finance modules; invites comments by 15 May New Delhi,
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IRDAI panel proposes low cost microfinance modules; invites comments by 15 May #FinanceIndia #StockMarketNEWS
IRDAI panel proposes low cost micro-finance modules; invites comments by 15 May New Delhi, May 2 (KNN) A committee appointed by regulator Insurance Regulatory and Development Authority (IRDAI) has suggested over a dozen low-cost "micro insurance" modules with a view to expand protection plans for uncovered population and small businesses.
The panel has suggested a maximum sum insured for each of the modules recommended by it. These include, Rs 5 lakh for Saral Jeevan Bima, Rs 5 lakh for Bharat Griha Raksha Policy, Rs 10 lakh for Bharat Sookshma Udyam Suraksha, Rs 3 lakh in case of personal accident and Rs 2,000 per day for 30 days in a year towards hospital expenses.
The IRDAI has sought comments on the report from stakeholders by May 15.
The committee has suggested that the insurers should be allowed to adopt a modular approach using various permutations and combinations for Combi MI (Micro Insurance) products.
MI aims to protect low-income people with insurance products that are affordable. The objective of MI is to empower people to cope with and recover from common risks such as death of the breadwinner, paying for treatment of serious illnesses, reconstructing destroyed homes and businesses, among others.
A one-stop solution to meet the insurance protection needs of these targeted groups will go a long way in achieving the objective of increasing insurance penetration in these strata of society, the panel said in its report.
It is recommended that the Combi MI product may be solicited by all distribution channels authorized to distribute insurance products by IRDAI. It may also be sold through the online mode, wherever feasible, the report said.
The panel suggested that one of the options to ensure uniformity and efficiency in the administration of the Combi product through the use of technology is to develop a common technological platform with the involvement of the Life Insurance Council and the General Insurance Council. (KNN Bureau)