The Insurance Regulatory and Development Authority (IRDA), India’s insurance regulator, recently drafted a proposal intended to achieve complete outreach to families with incomes below the poverty line. The proposal would include coverage against natural catastrophes and accidental death and also is intended to encourage the use of savings plans. Within five years, insurers would be expected to reach 100 percent of poor families with the target for each insurer determined in proportion to its market share. IRDA’s proposal would offer customers coverage of INR 40,000 (USD 757) to INR 200,000 (USD 3,808) with terms of 5 to 25 years, in addition to any government social security benefits for which they may already be eligible. Consumer’s family members would also be eligible for this coverage. Details regarding the premiums that would be charged are unavailable.
IRDA’s purpose is to regulate the Indian insurance industry with the goals of protecting policyholders and ensuring industry growth. According to IRDA’s 2011 annual report, the industry consists of 49 insurance companies both in the public and private sectors.
By Sarah Benali, Research Associate
About Insurance Regulatory and Development Authority (IRDA)
The Insurance Regulatory and Development Authority (IRDA) is the regulator of the insurance industry in India. It was 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 IRDA’s 2011 annual report, the Indian insurance industry consists of a total of 49 insurance companies in the public and private sectors.
Sources and Additional Resources
[1] SmartInvestor.in Story: “IRDA’s draft proposal for insurance cover to BPL families”, September 23, 2012, http://smartinvestor.business-standard.com/market/story-134747-storydet-IRDAs_draft_proposal_for_insurance_cover_to_BPL_families.htm
MicroCapital.org Story: “MICROCAPITAL BRIEF: Insurance Regulatory and Development Authority (IRDA) of India Proposes Shop Owners be Allowed to Sell Microinsurance,” August 6, 2012, https://www.microcapital.org/microcapital-brief-insurance-regulatory-and-development-authority-irda-of-india-proposes-shop-owners-be-allowed-to-sell-microinsurance/
MicroCapital.org Story: “MICROCAPITAL BRIEF: India’s Life Insurance Corporation, Mobile Operator Robi Axiata of Bangladesh Launch Microinsurance Offerings,” September 29, 2012, https://www.microcapital.org/microcapital-brief-indias-life-insurance-corporation-mobile-operator-robi-axiata-of-bangladesh-launch-microinsurance-offerings/
MicroCapital Universe Profile: Insurance Regulatory and Development Authority
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IRDA
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