In a bid to cater to the low income group, IndiaFirst Life Insurance Company Ltd plans to launch its micro-insurance and pension products from this current fiscal. Sudhin Roy Chowdhury, Member (Life), IRDA said that the regulator is expected to issue guidelines on such products shortly.
Mohit Rochlani, Business Head-Bancassurance, IndiaFirst Life said, “We have already designed some products and are waiting for the regulatory guidelines. Once the guidelines are out, we will seek the regulatory approval to roll out micro-insurance products. We are hopeful of launching it by September this year.
“Typically, the January-March quarter is the time when there is good demand for such products. So we hope to launch them before the last quarter of this fiscal,” he said
According to Rochlani, distribution and servicing of premiums are the biggest challenges for the micro-insurance sector. “These segments of people generate daily income. So we have to put in place a system for collecting premiums on a daily or weekly basis from such customers,” he said.
The insurance watchdog is exploring various channels, including business correspondents and kiranashops, to help extend insurance into rural areas.
This apart, the insurer has tie-ups with seven regional rural banks. “We are looking at tying up with more RRBs across the country to ramp up our rural presence,” he said.
