Page 9 - Insurance Times JUNE 2022

IRDAI

News

Govt's flagship insurance IRDAI douses 'Burning the Indian insurance coverage business
arrange by IRDAI, to cost any product.
schemes subscribers grow- Cost', premiums may fall The regulator stated it has been receiv-
ing for Corporates ing a number of complaints from poli-
cyholders, each instantly and thru var-
IRDAI has stated that 'Burning Cost'
The Centre's flagship life insurance
ied platforms corresponding to business
can't be quoted by basic insurers as a
scheme - Pradhan Mantri Jeevan Jyoti
'mandated minimum rate' to cost pre- associations, that insurers are referring
Bima Yojana (PMJJBY), and accidental
miums to prospects. to the 'Burning Cost' as a 'mandated
insurance scheme, Pradhan Mantri
minimum rate'.
Suraksha Bima Yojana (PMSBY) - have The new notification by IRDAI on the
seen enrollments rise to 128 million and position of 'Burning Cost' - which is a re- IRDAI moots 'combi micro
284 million, respectively, in seven years versal of its earlier stand - will now assist
insurance' product
insurers to decrease the premiums for
of inception.
purchasers, insurance coverage sources A panel on Micro Insurance (MI) - con-
The PMJJBY Life Insurance Company
stated. However, whether or not it can stituted by the IRDAI - has suggested
provides life insurance coverage of Rs 2
result in undercutting of costs resulting introduction of a Combi MI product.
lakh at a rate of Rs 330 per month to all
in cut-throat competitors and underwrit-
"There is a case to have a Combi MI
account holders aged between 18 and
ing losses stays to be seen. The new sce-
product which can be developed on a
50 years and has paid out Rs 11,522 nario will likely be detrimental for the
modular basis, giving flexibility to the
crore to 576,121 families. Nearly 50 reinsurers who had seen their hearth
insurer to offer coverage to different
percent of claims were paid out for premium going up within the final two
groups and individuals as per their spe-
Covid-19 deaths, the Ministry of Fi- years, business analysts stated.
cific protection needs,'' the committee,
nance said in a statement.
Burning Cost is outlined as a form of chaired by Yegnapriya Bharath, Chief
The PMJJBY is available to people in the break-even value the place the upper General Manager (Non-Life), IRDAI said
age group of 18 to 50 years having a claims within the portfolio will in its report.
bank account who give their consent to robotically result in greater premiums
"The need of the hour is better pen-
join/enable auto-debit. Aadhar would to be collected within the subsequent
etration of insurance amongst the vul-
yr. In a bid to herald underwriting self-
be the primary KYC for the bank ac-
nerable sections of society. A one-stop
discipline and checking rampant under-
count.
solution to meet the insurance protec-
pricing, resulting in giant underwriting
The life cover of Rs 2 lakhs shall be for tion needs of these targeted groups will
losses within the Indian basic insurance
the one year period stretching from 1st go a long way in achieving the objec-
coverage business, IRDAI had earlier
June to 31st May and will be renew- tive of increasing insurance penetration
requested the overall insurers to stay
able. Risk coverage under this scheme in these strata of society," the report
to the 'Burning Cost' as ready by the
is for Rs 2 Lakh in case of the death of Insurance Information Bureau of India said.
the insured due to any reason. (IIBI), a knowledge mining physique for As far as a Combi MI product is con-
The Insurance Times, June 2022 9