Regulations by IRDA pertaining to Microinsurance as of July 2007
a) life insurance companies are required to sell 7%, 9%, 12%, 14% and 16% of their policies in rural areas in the first, second, third, fourth and fifth financial years, respectively.
b) Non-life insurers need to earn 5% of their gross written premium from rural areas after the third year of operation.
c) Both life and non-life insurers have to insure 20,000 lives from the social sector in the fifth year of operation.
The social sector includes the informal and unorganised sector, and economically vulnerable and backward classes from the rural and urban areas.
Proposals in the anvil
Rural products must offer minimum sum assured of Rs 5,000 for general and life insurance policies .
Health insurance for family and Personal accident per person will have to be a minimum of Rs 10,000 .
Social products can’t offer sum assured beyond Rs 30,000 for general insurance covers and health cover for individual and family floaters.
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