In an effort to boost sales of microinsurance in India, the Insurance Regulatory and Development Authority (IRDA), the country’s regulatory body for the insurance industry, reportedly has proposed that microinsurance firms offer policies with maturity benefits [1]. A maturity benefit is the minimum sum guaranteed to the insuree after the term of the policy has elapsed. Further details of the proposal are not available.
For the fiscal year ending in March 2012, firms reportedly sold 14.8 million term microinsurance policies covering one or more of death, accident or hospitalization without maturity benefits. Information for fiscal year 2011 is not available.
By Jennifer Young, 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 2013 IRDA data, the Indian insurance industry consists of 24 life insurers, 27 non-life insurers and one re-insurer. Data on the number of microinsurers in the country is unavailable. IRDA is overseen by the Reserve Bank of India, the country’s central bank.
Sources and Additional Resources
[1] eDaily Story, “India: IRDA Urges Insurers to Offer Maturity Benefits for Micro Cover,” http://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/27575/Type/eDaily
MicroCapital Story, April 22, 2013, “MICROCAPITAL BRIEF: Insurance Regulatory and Development Authority (IRDA) of India Expands Allowable Microinsurance Agent Entity Types,” https://www.microcapital.org/microcapital-brief-insurance-regulatory-and-development-authority-irda-of-india-expands-allowable-microinsurance-agent-entity-types/
MicroCapital Story, January 11, 2013, “MICROCAPITAL BRIEF: India’s Insurance Regulatory and Development Authority (IRDA) Relaxes Paperwork Requirements for Microinsurance Customers,” https://www.microcapital.org/microcapital-brief-indias-insurance-regulatory-and-development-authority-irda-relaxes-paperwork-requirements-for-microinsurance-customers/
MicroCapital Story, October 5, 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 Story, August 6, 2012, “MICROCAPITAL BRIEF: Insurance Regulatory and Development Authority (IRDA) of India Proposes Shop Owners be Allowed to Sell Microinsurance,” https://www.microcapital.org/microcapital-brief-insurance-regulatory-and-development-authority-irda-of-india-proposes-shop-owners-be-allowed-to-sell-microinsurance/https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IRDA
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