IRDAI moots ‘combi micro insurance’ product

A panel on Micro Insurance (MI) – constituted by the IRDAI – has suggested introduction of a Combi MI product.

“There is a case to have a Combi MI product which can be developed on a modular basis, giving flexibility to the insurer to offer coverage to different groups and individuals as per their specific protection needs,” the committee, chaired by Yegnapriya Bharath, Chief General Manager (Non-Life), IRDAI said in its report.

“The need of the hour is better penetration of insurance amongst the vulnerable sections of society. A one-stop solution to meet the insurance protection needs of these targeted groups will go a long way in achieving the objective of increasing insurance penetration in these strata of society,” the report said.

As far as a Combi MI product is concerned, insurers may follow a modular approach using various permutations and combinations, leaving the choice to the proposer.

“Certain standard products prescribed by IRDAI can be offered as modules, albeit with a restricted sum insured, keeping the target segment in view,” the committee said, while recommending 14 standard modules and suggests the product may be sold by insurers either on an individual or group basis.

While it is necessary to have identified channels of distribution which have been provided for in the MI Regulations, it might be a good idea to permit all other channels also to chip in and widen the reach, it added.