Hyderabad:
To assess the desirability and feasibility of formation of standalone micro-insurance companies in the country, the insurance regulator IRDAI has formed a panel under Mirai Chatterjee,director,SEWA, Ahmedabad.
India is the largest micro-insurance market in the world
Well known banker with vast exposure in micro finance sector Nachiket Mor and Ajit Dayal,Founder,Quantum Mutual Fund will be also the members of the panel with eight other experts and the panel would submit its reports in three months.
The panel would review:
– the existing legal and regulatory framework to enable a standalone micro-insurance company Indian Insurance Company after analysing similar provisions in other jurisdictions;
– recommend on the maximum sum insured per person which may be accepted by the proposed micro-insurance Company;
– considering the aspect of ease of doing business, suggest on the applicability and or relaxation of extant Act / Regulatory provisions for proposed micro-insurance Company, which may be registered as an insurer.
The indicative regulatory aspects are: Capital and Solvency,Underwriting, Product and Claims,Finance and Accounting, Investments, Operations, Corporate Governance,
India has been seen to be a pioneer in the Micro-Insurance sector in the world and has provided an example with its micro-insurance regulations. The IRDAI has received suggestions on allowing standalone insurers for transaction of exclusive Micro-Insurance business, as it may boost the Micro-Insurance penetration in India with geographical spread, said IRDAI.
Further, in a bid to develop a single product combining life, non-life and health features product are to be designed, which are simple, affordable and easy to understand, IRDAI has set up another committee under Yegna Priya Bharat, CGM, IRDAI.
Though various schemes of the government have created new opportunities for Micro-Insurance to reach the vast majority of the poor, including those working in the informal sector, market penetration for this segment is seen to be low in India;
The panel will recommend on design of products on policy wordings, policy schedules, prospectus etc for such combi-products.It will also recommend on the servicing aspects of such policies, where there is an involvement of more than one insurer.