The Insurance Regulatory and Development Authority has issued revised guidelines on micro insurance products. The final set of regulations is expected to be drafted soon.
Irda’s draft has recommended that partial withdrawals may be permitted from the second policy year onwards, subject to ensuring maintenance of a minimum balance equivalent to one annual premium in the policy account.
And, an insurer may enter into a deed of agreement with a person or entity whose micro insurance agency agreement was terminated (other than on grounds of fraud or misconduct) only after the expiry of three months. No insurer will be allowed to re-appoint a micro insurance agent whose services were ended on grounds of fraud or misconduct.
After any such termination of an agent’s services, the policies of the agent may be allotted to another of the same insurer, after getting the latter’s consent.
