Concerned over the low penetration of insurance, the insurance watch dog, Insurance Regulatory and Development Authority has proposed to sell micro-insurance products through chemists, kirana and petrol pumps to increase penetration.
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Micro-insurance is product which targets people of low income segment from urban as well as rural areas.In an exposure draft on Micro Insurance Regulations, IRDA said, “In order to broadbase the micro insurance business there is a case to expand the micro insurance agency base by adding few more distribution partners or Individuals.”
The regulator has proposes to allow individual owners of kirana shops, fair price shops, medical shops, petrol pumps,PCOs to be categorized as micro insurance agents. At present some NGOs, Micro Finance Institutions (MFIs), Self Help Groups (SHGs), District Co-operative Banks, Regional Rural Banks, Primary Agricultural Co-operative Societies and individual agents are working as insurance agents.
“Since, these individuals have a physical presence and standing in these specific market segments as those of the existing Standalone Micro Insurance Agents, it is considered that they stand on similar footing along with standalone micro insurance agents,“ the IRDA said.
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