1.    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;

2.    Various schemes of the Government have created new opportunities for Micro-Insurance to reach the vast majority of the poor, including those working in the informal sector.   Even so, market penetration for this segment is seen to be low in India;

3.    In view of improving the Micro-Insurance penetration it is felt that, combination of Life, Non-Life and Health product are to be designed, which are simple, affordable and easy to understand for such class of people and may cater with their need for insurance protection;   

4.    Considering the above, the competent Authority has decided to set up a committee with the following members to look into the above aspects:

5.    The terms of reference of the committee are as below: 

i)     To review the existing regulatory framework on combi-products in India as well as in other jurisdictions and suggest improvements; 

ii)    To recommend on various combinations of Life, Non-Life, Health products suitable for micro-insurance segment, which shall be sustainable as per actuarial evaluations of such products;

iii)   To recommend on design of products viz policy wordings, policy schedules, prospectus etc. for such combi-products;

iv)   To recommend on the servicing aspects of such policies, where there is an involvement of more than one insurer;

v)    Suggest on file and use procedures of such combi-products;

vi)   Suggest on creating of effective awareness programme including training programme to the distribution channels;

vii)  Any other related matter pertaining to product structure of micro insurance segment;

6.    The Committee shall meet as often as required and submit its recommendations within three months of this order.

Suresh Mathur

Executive Director