The committee feels 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
Hyderabad:
A committee formed by IRDA has recommended a combi micro insurance(MI) product having life, general and health features, whose underwriting and servicing be
done through the use of seamless technology with prior agreement amongst a life
insurer, a general insurer and a health insurer for their respective areas.
The objective of MI is to protect the low income group people and thus empower them to cope with various challenges such as death of the bread-winner, dealing with sickness in the family and protecting their livelihoods in general, said the committee
The committee is of the view that combining the MI product with various government schemes at the central level and the state level will increase the outreach of the product and also make it easier to convince the target groups about the benefit of
insurance protection through the Combi MI product.
The panel recommends 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 on-line mode, wherever feasible.
Insurers may follow a modular approach using various permutations and combinations, leaving the choice to the proposer. Certain standard products prescribed by IRDAI can be offered as modules, albeit with a restricted sum insured keeping the target segment in view.
The committee recommends 14 standard modules and suggested that the product
may be sold by insurers either on individual basis or group basis.
The committee feels 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.
The committee had asked one of the technology providers to make a presentation on a possible solution to understand its feasibility.
The committee is convinced that the underwriting and servicing of a Combi product
involving more than one insurer is technically possible and feasible.
The committee felt that creation of the required awareness by the insurers in
conjunction with the various distribution channels and government agencies at the
grass-root level is necessary and that this aspect requires a special focus to achieve
increased penetration amongst the targeted groups