Out of concern that the policy has hindered financial inclusion, the Insurance Regulatory and Development Authority (IRDA), India’s insurance regulator, will no longer require written confirmation from banks as proof of residence from those seeking to purchase microinsurance products. According to a recent notification released by IRDA, “It has come to our notice that customers in remote areas who have limited access to banking facilities have difficulty in providing such written confirmations from banks.” Instead, valid passbooks and bank account statements that include residential details will suffice. Although this guideline has been introduced to assist those in rural areas, it applies to all microinsurance companies and customers.
According to 2011 IRDA data, the Indian insurance industry consists of 24 life insurers, 27 non-life insurers and one 1 re-insurer. Data on the number of microinsurers in the country is unavailable.
By Lena Phillips, Research Associate
About The Insurance Regulatory and Development Authority (IRDA)
The Insurance Regulatory and Development Authority (IRDA) is the regulator of the insurance industry in India. Formed by the Indian parliament in 1999, the mission of IRDA is “to protect the interests of the policyholders” and “to regulate, promote and ensure orderly growth of the insurance industry.” According to 2011 IRDA data, the Indian insurance industry consists of 24 life insurers, 27 non-life insurers and one 1 re-insurer. Data on the number of microinsurers in the country is unavailable. IRDA is regulated by the Reserve Bank of India, the country’s central bank.
Sources and Additional Resources:
Insurance Regulatory and Development Authority, 28 December 2012, “AML/CFT Guidelines (Ref. No. IRDA/SDD/MISC/CIR/261/12/2012)”, http://www.irda.gov.in/admincms/cms/frmwhats_list.aspx
MicroCapital.org Article, 5 October 2012: “MICROCAPITAL BRIEF: India’s Insurance Regulatory and Development Authority May Require Insurers to Sign Up All Poor Families Within 5 Years”, https://www.microcapital.org/microcapital-brief-indias-insurance-regulatory-and-development-authority-may-require-insurers-to-sign-up-all-poor-families-within-5-years/
MicroCapital Universe Profile: The Insurance Regulatory and Development Authority (IRDA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IRDA
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