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Micro Insurance

In: Business and Management

Submitted By snehalparmar
Words 2019
Pages 9
micro insurance meaning Insurance Regulatory and Development Authority (IRDA) has created a special category of insurance policies called micro-insurance policies to promote insurance coverage among economically vulnerable sections of society. The IRDA Micro-insurance Regulations, 2005 defines and enables micro-insurance. definition by invetopedia
Insurance products that offer coverage to low-income households. A microinsurance plan provides protection to individuals who have little savings and is tailored specifically for lower valued assets and compensation for illness, injury or death.
Investopedia explains 'Microinsurance'
As a division of microfinance, microinsurance looks to aid poor families by offering insurance plans tailored to their needs. Microinsurance is often found in developing countries, where the current insurance markets are inefficient or non-existent. Because the coverage value is lower than a usual insurance plan, the insured people pay considerably smaller premiums.

A micro-insurance policy is:
· A general or life insurance policy with a sum assured of Rs 50,000 or less
A general micro-insurance product is any:
· Health insurance contract
· Any contract covering belongings such as
· Hut
· Livestock
· Tools or instruments or
· Any personal accident contract
· They can be on an individual or group basis
A life micro-insurance product is:
· A term insurance contract with or without return of premium
· Any endowment insurance contract or
· A health insurance contract
· They can be with or without an accident benefit rider and
· Either on an individual or group basis
There is flexibility in the regulations for insurers to offer composite covers or package products that include life and general insurance covers together
Intermediaries:
Micro- insurance business is done through the following intermediaries:

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