The Insurance Regulatory and Development Authority (IRDAI) has formed a panel led by Dr Suresh Mathur to investigate the Microinsurance Framework. IRDAI has formed a 13-member committee chaired by IRDAI Executive Chairman Dr Suresh Mathur to investigate the regulatory framework of microinsurance and recommend measures to increase demand for such products. It will include IRDAI members, insurers’ representatives from life, general, and health insurance companies in both the public and private sectors, NGOs, and others. Taking about Suresh Mathur Committee, the 13-member panel has been tasked with developing product designs with customer-friendly underwritings, such as simple premium payment methods and claims settlement procedures.

Panel representatives:

The committee represents health, general and health insurance companies in the public and private sectors. A circular from IRDAI said India has proved to be a very attractive market and a pioneer in the world of small-scale insurance. Aimed specifically to protect low-income people with affordable insurance products, microinsurance promises to support the sustainable livelihoods of the poor. However, its penetration into the market remains low.

While reviewing the microinsurance regulatory framework nationally and internationally, the committee will propose changes to the distribution structure, including mobile-based and technological solutions. Setting a three-month deadline for submissions, the circular said the committee would also recommend developing effective public awareness programs.

Responsibilities of Suresh Mathur Committee:

The answer to What are the responsibilities of the Suresh Mathur Committee is as follows:

• Review of IRDAI (Registration of Insurance Marketing Firms) Regulations, 2015

• Recommend guidelines in areas where regulations do not apply

• Recommend strengthening the distribution line of insurance companies by taking products under the authority of other financial regulators.

• The committee will come up with recommendations before 31st July 2018.

Reasons behind the Committee’s composition:

Considering that the review of regulations is essential for the distribution line to develop and achieve the goal of disseminating insurance coverage to all sectors of society, IRDAI forms a 10-member committee. IRDAI introduced a new line of insurance marketing distribution firms in 2015 to increase the country’s insurance coverage through smart registration in the area. This station has been in operation for three years. The firms, which serve as distribution centres for insurance brokers, are regulated by the IRDAI (Registration of Insurance Marketing Firms) Regulations, 2015. Therefore, the composition of the Committee was a necessity indeed.

Microinsurance

• IRDAI has created a special insurance policy component called a micro-insurance policy (General or Health Insurance Policy with a guaranteed amount of Rs 50,000 or less) to improve insurance provision among the most vulnerable sections of society. Micro-insurance is defined and enforced by the IRDAI Microinsurance Regulations, 2005.

• A General Micro-Insurance Product is a Health Insurance Contract that covers assets such as households, Livestock, Equipment or Equipment and any personal risk contract that belongs to an individual or group.

• The Life Micro-Insurance product is a paid term insurance contract with or without it, any endowment insurance contract or health insurance contract. By accident with or without it and is for an individual or group. There is flexibility in the rules of insurance companies.

• Micro-Insurance Business is run by consultants such as non-governmental organisations (NGOs) and Self-Help Groups (SHGs).

• Benefits of small insurance – Specially designed to protect low-income people, with affordable insurance products, and the promise of small insurance to support the sustainable lives of the poor.

Committee Members

Conclusion

IRDAI has set up a 13-member committee to review the regulatory framework for small insurance, and recommend steps to increase the demand for such products in India by recommending product and customer designs – friendly writing, for example, methods. simple premium payment methods and simple claims payment procedures. The committee is chaired by Suresh Mathur, Executive Director of IRDAI. The committee was formed as a result of the lower expectations of low-cost insurance products despite their huge benefits to India. It will also provide recommendations on the modification of distribution structure, that is, to create effective awareness programs and create solutions driven by web-based technologies.