Insurance For All By 2047: What is micro-insurance and how it can bridge coverage gaps – CNBC TV18
SUMMARY
As the IRDAI targets “Insurance for All” by 2047, micro-insurance is becoming key to providing affordable coverage to India’s low-income and underserved populations. Tailored to protect those most vulnerable to financial losses, micro-insurance helps individuals in the underprivileged sector navigate risks they cannot afford to face alone. Here’s more
1 / 5The Insurance Regulatory and Development Authority has committed to enable every citizen to have an appropriate health, life and property insurance cover through the “Insurance for all” by 2047 mission. Micro-insurance will play a significant role in this mission.
2 / 5As per the IRDAI, micro-insurance is “is specifically intended for the protection of low -income people, with affordable insurance products to help them cope with and recover from financial losses.” Therefore, microinsurance is a form of insurance that provides financial protection for those who cannot afford traditional insurance plans.
3 / 5Microinsurance beneficiaries are usually low income individuals or household with limited incomes. “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,” said the IRDAI (Image: PTI Photo)
4 / 5Some microinsurance schemes introduced post 2014 are — Kotak Sampoorn Bima Micro-Insurance Plan, Sahara Surakshit Pariwar Jeevan Bima, LIC’s Bhagya Lakshmi, Met Grameen Ashray, LIC’s New Jeevan Mangal.
5 / 5The limits of microinsurance vary depending on the type of cover. Meanwhile the minimum and maximum term of cover remain unchanged at 1 year regardless of cover type. (Image: IRDAI)
