The Insurance Regulatory and Development Authority of India (IRDAI) has set up a committee under IRDAI Executive Director Suresh Mathur to review the regulatory framework on microinsurance.
Microinsurance refers to products offering coverage to low-income households or to individuals who have little savings and is tailored specifically for lower valued assets and compensation for illness, injury or death.
The committee has been formed in the backdrop of a low demand of microinsurance products despite their inherent benefits.The committee will comprise of officials from the IRDAI, insurance companies and NGOs.
The committee will review the regulatory framework on microinsurance in the country and abroad.It will recommend measures that should be taken to increase the demand for microinsurance products.
The IRDAI is an autonomous,statutory body created by IRDA Act,1999.It was created based on the recommendations of the Malhotra Committee. It’s headquarters is in Hyderabad.
The functions of IRDA includes (a)regulating the insurance industry and protects the customers (b)promotion of competition to enhance customer satisfaction and (c)lowering premiums for ensuring the financial security of the insurance sector.
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