Micro insurance is specifically intended for the protection of low -income people, with affordable insurance products to help them cope with and recover from financial losses. The need of insurance for underprivileged section cannot be avoided as this section of society is more prone to many risks which ultimately leads to incapacity to face such uncertain situations. Hence, the role that micro insurance plays thus becomes inevitable.
Micro Insurance Regulations:
1.What are the governing provisions for Micro Insurance?
Insurance Regulatory and Development Authority of India (Micro Insurance) Regulations, 2015 (Hereinafter referred to as “Regulations”).
2. What is a Micro Insurance Policy?
As per the Regulations, micro insurance policy is an insurance policy sold under a plan which has been specifically approved by the Authority as a micro-insurance product.
3. What is a Micro Insurance Product?
As per the Regulations, Micro Insurance Product includes a general micro-insurance product or life insurance product or health insurance product, proposal form and all marketing materials in respect thereof;
4. Who is a Micro Insurance Agent?
As per the Regulations, Micro Insurance Agent means the following entities or individuals who are appointed as Micro Insurance Agents in accordance to the regulations.
1. A Non-Government Organisation (NGO).
2. A. Self-Help Group (SHG).
3. A Micro-Finance Institution (MFI).
4. RBI regulated NBFC – MFIs.
5. District Cooperative Banks licensed by Reserve Bank of India subject to being eligible as per extant norms of Reserve Bank of India.
6. Regional Rural Banks established under Section (3) of Regional Rural Banks Act, 1976 subject to being eligible as per extant norms of Reserve Bank of India.
7. Urban Co-operative banks licensed by Reserve Bank of India subject to being eligible as per extant norms of Reserve Bank of India.
8. Primary Agricultural Cooperative Societies.
9. Other Cooperative Societies registered under any of the Cooperative Societies Acts.
10. Business correspondents appointed in accordance to the extant RBI Guidelines with any of the Scheduled Commercial Banks.