IRDA SETS MINIMUM COVER RATES FOR RURAL INSURANCE

India’s Insurance Regulatory & Development Authority (IRDA) has defined the minimum sums assured for products if they are to be defined as rural and social insurance products, reports domain-b . Rural products will be required to offer a minimum sum assured of Rp5,000 ($123) for general and life policies, while health insurance for families and personal accident will have an assigned minimum of Rp10,000. There will be no maximum sum assured. There had been concerns expressed that some sector participants were offering very low-value, low-premium covers in order to qualify. IRDA has also included microinsurance within the rural/social remit. Life assurers are required to sell an increasing proportion of their policies in rural areas, rising to 16% by the fifth year of operation. Non-life players are required to earn 5% of their gross written premiums from rural areas after their third year of operation.