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IRDA asks Life Insurance Council to design single insurance product

The IRDA has asked the Life Insurance Council to design a single insurance product

May 16, 2012 4:10 IST | India Infoline News Service
The IRDA (Insurance Regulatory and Development Authority) has asked the Life Insurance Council to design a single insurance product that will cover life as well as general insurance.
“It will be a single product that would protect life and also against personal accidents,” IRDA chairman J Hari Narayan said on the sidelines of a national conference by Assocham on ‘Financial Inclusion: Integrating Insurance into Total Package’ in Hyderabad.
“The idea was referred to the Life Council. Supposing we have only one type of product, will that reduce cost and make it more efficiently distributed. That is something these people will have to study and come out with,” he added. The IRDA chairman said, “It has come to their notice that microfinance institutions were asking for a high service charge on the sale of micro-insurance products.”
According to Mr Hari Narayan, “The whole question of bundling of insurance with other products is a major issue. Not just in India but internationally. So we are also studying this why to allow this kind of bundling. We need to examine the implications further. Then only we will be able to come out with regulatory intervention.” Mr Hari Narayan also a released whitepaper prepared by Ernst and Young in association with Assocham on ‘Need for Financial Inclusion: An Integrated Approach’.

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