MICRO INSURANCE IN INDIA

-As a part of developmental role, Insurance Regulatory and Development Authority (IRDA)<br>finalized and issued guidelines on Micro insurance on 10thNovember, 2005 after discussing it at various<br>forums. Micro insurance will meet the need for having insurance products which can be afforded by the<br>rural and urban poor. The Regulations on Micro insurance provides a platform and rules to procure<br>insurance for the targeted segment of the society. The regulations provide for a tie up between a life &amp; a<br>non-life insurance company for distribution of insurance products to improve the penetration of<br>insurance in the selected segment. Thus cross-selling is permitted in this area by the IRDA. For<br>encouraging the sale of Micro insurance products, the Authority has mandated that these would form part<br>of the social and rural obligations of an insurer prescribed under the provisions of the Insurance Act,<br>1938. The aim of this paper is to throw some light on the micro insurance guidelines in India and also to<br>see speed of its growth as in India, more than two-third of the population lives below poverty line and<br>therefore the importance of micro finance is undeniable.