Page 171 - IC38 GENERAL INSURANCE

J. Micro insurance and health insurance for poorer sections

Micro-insurance products are specifically designed to aim for the protection of
low income people from rural and informal sectors. The low income people
form a sizable part of our population and usually don‟t have any health security
cover. Therefore, this low value product, with an affordable premium and
benefit package, is initiated to help these people to cope with and recover from
common risks. Micro insurance is governed by the IRDA Micro Insurance
Regulations, 2005.

These products come with a small premium and typically, the sum insured is
below Rs.30,000, as required vide the IRDA micro-insurance regulations, 2005.
Such covers are mostly taken on a group basis by various community
organizations or non-governmental organizations (NGOs) for their members. The
IRDA‟s rural and social sector obligations also require that insurers should sell a
defined proportion of their policies as micro-insurance products, to enable
wider reach of insurance.

Two policies particularly created by PSUs to cater to the poorer sections of
society are described below:

1. Jan Arogya Bima Policy

Following are the features of Jan Arogya Bima Policy:

a. This policy is designed to provide cheap medical insurance to poorer
sections of the society.

b. The coverage is along the lines of the individual Mediclaim policy.
Cumulative bonus and medical check-up benefits are not included.

c. The policy is available to individuals and family members.

d. The age limit is five to 70 years.

e. Children between the age of three months and five years can be covered
provided one or both parents are covered concurrently.

f. The sum insured per insured person is restricted to Rs.5,000 and the
premium payable as per the following table.

Table 2.1

Age of the person insured Up to 46 46-55 56-65 66-70

years 120 140
120 140
Head of the family 70 100 50 50
290 330
Spouse 70 100 340 380

Dependent child up to 25 years 50 50

For family of 2+1 dependent child 190 250

For family of 2+2 dependent 240 300

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