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Micro insurance products to offer reasonable returns: IRDA

The regulator is likely to allow business correspondents of banks to sell policies in India’s rural regions to boost sales

May 15, 2013 4:02 IST | India Infoline News Service
The IRDA (Insurance Regulatory and Development Authority) wants risk cover providers to offer maturity benefits on every micro-insurance plan.

The regulator is likely to allow business correspondents of banks to sell policies in India’s rural regions to boost sales.

IRDA said it will come up with new regulations in the micro-insurance sector in two to three months to include this proposal.

The regulator had asked insurers to design up to four-five new micro-insurance products which will be cost effective, and at the same time provide better returns to investors, Sudhin Roy Chowdhury, Member (life), IRDA, said.

Mr Chowdhury was speaking at a seminar organised by the Bengal Chamber of Commerce and Industry on the Indian insurance industry in Kolkata on 10th May.

Micro-insurance—sold to the economically weaker section—has seen a steady decline since 2010. "Simple and cost-effective policies with some reasonable returns are required to push micro-insurance, Mr Chowdhury said.

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