The importance of life and health insurance meaning has grown significantly in the wake of the Kovid developments. However, the expansion of insurance in the country has not yet reached the expected level.
Focusing on insurance at Home, the Insurance Regulatory and Development Authority of India (IRDAI) is preparing proposals to bring in an insurance Bhima Mitra system to provide home insurance services.
Life insurance coverage in India is only 3.2 percent. Insurance policies in three tier cities and rural areas are not yet as widely available as expected, although slightly higher in major cities. Insurance companies are also not focusing properly on rural areas.
This is because the insurance companies think that the cost is higher than the business in those areas. The regulator hopes that the insurance Beema Mitra will help bring insurance closer to rural India.
How Bhima Mitra Insurance works and benefits
The government has set up bank allies to provide banking services in rural areas. They are all women. Working with self-help groups in villages. They are affiliated with a designated bank branch and provide their services.
Their job is to open a savings account for self-help groups, assist with loans, and look after financial services for all.
IRDAI is preparing to set up similar insurance allies. This will enable the rural people to connect with the insurance companies. Debashish Pandey, chairman, IRDAI, told a recent meeting of CEOs of insurance companies that companies can expand insurance by formulating special policies. Guidelines in this regard are likely to be issued soon.
How Insurance Policy works according to the requirements
The regulatory body is also preparing some proposals on how the policies brought by the insurance companies can bridge the gap between the needs of the policyholders.
Data Analytics is being used for this. Advanced technology will be used to manage the distribution of insurance policies more efficiently.
Insurance consultants will arrange for insurance personnel working at the field level to utilize the technology. Pandey suggested that insurance companies should offer their services internationally
Micro insurance policies available
IRDAI plans to relax regulations to invite new companies into the insurance market in India. The insurance company hopes that new companies will be able to come in by reducing the minimum capital requirement of Rs 100 crore.
It is hoped that an investment of at least Rs 15 crore will be sufficient for the company to provide micro insurance (micro insurance) on a district basis, thereby enabling the fulfillment of the goal of a home insurance policy.
Pandey said the aim was to make the insurance system work for the public good. IRDAI will focus on reviewing the existing policy of the Insurance Ombudsman and making it more efficient, as well as conducting various programs to raise public awareness on insurance policies.
