look news india
The Insurance Regulatory and Development Authority of India (IRDAI) unveiled its ground-breaking initiative, Bima Vistaar, a comprehensive and affordable insurance product tailored for the rural communities of India. Nominal price of Rs 1,500 per policy. Insurance extension provides affordable and comprehensive insurance coverage, ensuring that the rural population has the financial protection they need. This unprecedented step by IRDAI reflects its commitment to meet the insurance needs of India's underserved communities, promoting financial inclusion and protection.
Bima Vistaar premium details
The product includes life cover with a premium of Rs 820, health cover at Rs 500, personal accident cover at Rs 100 and property cover at Rs 80. If taken on floater basis for the entire family, the policy will cost Rs 2,420. An additional fee of Rs 900 was charged for the remaining family members. The sum insured for life, personal accident and property cover is pegged at Rs 2 lakh, while the health cover, called Hospital Cash, offers a sum assured of Rs 500 for 10 days, with a maximum claim of Rs 5,000. Trouble making bills.
Furthermore, to encourage wider adoption and distribution, agents selling insurance extension policies are entitled to a 10% commission. The strategy aims to boost the reach and popularity of the product among the target demographic, promoting financial inclusion and security in rural India.
claim settlement
Claim settlement is proposed to be done differently for different segments. Part of the combo solution for assets will be on a parametric basis, ensuring timely payment depending on the magnitude of the incident.
The insurance expansion was announced at a summit of insurance CEOs led by IRDAI Chairman Debashish Panda.
According to a Swiss Re Sigma report, in the financial year 2022-23 (FY23), India's overall insurance penetration was down 4 per cent from the level of 4.2 per cent in FY22. This is much lower than the global insurance penetration of 6.8 percent. In FY23, insurance density in India increased to $92 from $91 in FY22.
Since, insurance extension aims to be a mass product to increase insurance penetration in the country, it is expected that it will generate larger sales volumes, unlike micro insurance products. Now that the premium has been decided, it will be possible to do a cost benefit analysis for the long-term sustainability of the product. Industry analysts said it is also necessary to find a reinsurance solution for the product.