The Insurance Regulatory and Development Authority of India has suggested the setting up of model insured villages throughout the country to increase insurance penetration in the rural areas. This concept was mooted by the IRDAI in a discussion paper on increasing penetration of insurance in rural areas with a special focus on agriculture and allied activities.
“The concept may be implemented in a minimum of 500 villages in different districts of the country in the first year and increased to a minimum of 1,000 villages in subsequent two years,” the paper said on which IRDAI has invited comments from stakeholders by May 17.
It also stated that the choice of villages is to be made carefully, considering various relevant aspects and parameters in order to implement the concept successfully for a period of 3-5 years.
Every general insurance and reinsurance company having office in India needs to be involved for piloting the concept, and the efforts in selected villages need to be continued for a minimum period of 3-5 years so as to make the insurance benefits visible to the community.
