Standard micro-insurance products to hit market soon

The proposed standard product on micro insurance for the insurance industry is expected to get the regulator’s nod in a month’s time and such off-the-shelf products would be available by March 2013.

“We hope that the standard product on micro-insurance for the insurance industry will get Insurance Regulatory and Development Authority’s approval in a month’s time,” IndiaFirst Life Insurance managing director & CEO P Nandagopal said on the sidelines of an insurance meet here.

“We are waiting IRDA approval and soon after, we will introduce the standard product in the market that can be sold off-the-shelf even through kirana stores,” he said.

The products will be in place within March, Nandagopal said.

Sector regulator IRDA had earlier said it was planning to develop 10 standard products in consultation with industry bodies which could be launched by the insurance companies without seeking regulatory nod.

Standard micro-insurance policy, or one of such products, is aimed to provide a comprehensive package of insurance cover relevant to persons belonging to the economically weaker sections in rural and urban areas.

Both life and non-life companies will offer a composite product with options of additional cover from both life and non-life, Nandagopal said.

Moreover, such standard product could be sold by both life and non-life companies.

IRDA would allow cooperative banks, regional rural banks, primary agricultural co-operative societies and individuals (shopkeepers, medical store owners, petrol pump owners, public telephone operators) to act as micro insurance agents.

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