The Insurance Regulatory and Development Authority of India (IRDAI) Micro Insurance committee suggested a Combi MI product. Yegnapriya Bharath, Chief General Manager (Non-Life), said, “ This product will help the insurers give flexible offers to groups or individuals as per their coverage requirements. Read this article to know more about the committee suggestions on Combi Micro Insurance.
The objective of Combi Micro Insurance
The vulnerable section of society is unable to receive micro insurance benefits. But with this product, there is a chance of getting those covered. So, the committee’s objective to introduce this product is to increase the penetration of insurance among such people.
Is a Modular Approach Approved for Combi Micro Insurance?
Yes, insurance companies would use a modular approach using various combinations and permutations to help customers make the final decision. For the process, the committee recommended 14 standard modules as well as certain standard products as modules, albeit with a restricted sum insured. This way, the product can meet its target segment.
The committee added that apart from the identified channels, IRDAI should permit other channels to chip and widen the range of Combi Micro Insurance.
Administration of This Insurance
The distribution channel solicits the product in case the IRDAI approves the same. It is available online, if feasible. Using seamless technology the underwriting and servicing of Combi Micro Insurance are done before getting an agreement from the life, health and general insurer depending on their respective areas. With the involvement of the Life and General Insurance council, a common technological platform is provided to maintain uniformity and efficiency in the administration.
Combining micro insurance with other government products helps reach the audience at both central and state levels. The nomenclature ‘Combi’ depicts a tie-up between life and general insurers. And this shows that a health insurer already exists in the product framework. But it hasn’t been given the nomenclature ‘Combo’ due to the complexity. Because servicing such a product is a challenge, especially for the distributors of the product.
However, the committee came up with recommendations on various aspects of the product. The regulator is expected to come up with a clear policy shortly.