The Insurance Regulatory and Development Authority (IRDA), India’s insurance regulatory organization, recently announced a draft set of regulations for insurers providing micro-life insurance policies.
One proposed change would require the provision of minimum life insurance coverage of INR 100,000 (USD 2,100) for a set policy premium of INR 2,224 (USD 47), which is an increase from the previous minimum coverage of INR 10,000 (USD 210). Additionally, insurance agents’ commissions will be capped at 10 percent of first-year premiums and 2 percent for renewal premiums earned for individual life insurance policies. For group insurance policies, commissions will be capped at 2 percent of first-year premiums and 0.5 percent for renewal premiums. The current agent commissions for microinsurance products are 20 percent on the first-year premium and 10 percent for renewals.
By Jennifer Shevock, Research Associate
About Insurance Regulatory and Development Authority (India):
The Insurance Regulatory and Development Authority (IRDA) is India’s insurance regulatory organization. Its objective is to regulate the industry to protect the interests of policyholders.
Sources and Additional Resources:
“Insurance Regulatory and Development Authority (Irda) of India proposes to increase micro-insurance life cover” September 10, 2010. http://microfinanceafrica.net/microfinance-around-the-world/insurance-regulatory-and-development-authority-irda-of-india-proposes-to-increase-micro-insurance-life-cover/
MICROCAPITAL BRIEF: “India’s Insurance Regulatory and Development Authority Launches Consumer Protection Regulation” July 12, 2010. https://www.microcapital.org/microcapital-brief-india%E2%80%99s-insurance-regulatory-and-development-authority-launches-consumer-protection-regulation/
MicroCapital Universe: Insurance Regulatory and Development Authority (India): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Insurance+Regulatory+and+Development+Authority
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