New Delhi: The Insurance Regulatory and Development Authority of India (IRDA) has suggested the launch of Combi Micro Insurance (MI) products.
A panel on MI set up by IRDA in February 2020 has suggested a product that can be developed on a modular basis, allowing the insurer to provide coverage to different groups and individuals as per their specific protection needs.
The panel includes members from NGOs, independent consultants, and other experience with the insurance and regulatory sectors.
According to the panel, “a one-stop solution to meet the insurance protection needs of low income groups will go a long way in achieving the objective of increasing insurance penetration among these sections of the society.”
The panel discussed various issues related to micro insurance such as desired product design, expediting the distribution of MI, use of available government channels to bundle insurance with existing plans and creating the required level of awareness about MI to achieve the target. discussed the need. To increase the spread of this segment of insurance in the country.
The panel said that better access to insurance among the weaker sections of the society is the need of the hour.
Insurers may follow a modular approach using various permutations and combinations, except at the option of the proposer. Certain standard products as prescribed by IRDA may be offered as modules, albeit with a limited sum insured, keeping in mind the target segment.
The panel has recommended 14 standard modules and suggested that the product can be sold by insurers either on an individual basis or on a group basis.
It suggested that the product may be solicited by all the distribution channels authorized by IRDA to distribute insurance products. According to the report, wherever possible, it can also be sold online.
The committee recommends that the underwriting and servicing of the product be done through the use of seamless technology between a life insurer, a general insurer and a health insurer with prior agreement for their respective areas.
The report states that they also feel that it is necessary to create necessary awareness by the insurers at the grassroots level with various distribution channels and government agencies and special attention needs to be given to this aspect to achieve increasing penetration among the target groups. the wanted. ,