With an objective to meet insurance for all by 2047, the Insurance Regulatory and Development Authority (IRDAI) on Friday issued a master circular directing life and non-life players to do a certain percentage of business compulsorily towards meeting rural, social sector and motor third-party obligations.
All life insurers shall ensure a minimum percentage of lives in identified and allocated gram panchayat, the master circular on rural, social sector and motor third-party obligation said.
The Life Insurance Council, in consultation with the Ministry of Panchayati Raj, will identify gram panchayat for fulfilling rural sector obligations, it added.
Upon identification of gram panchayats, the council should indicate the minimum number to be allocated to each insurer based on mutually agreed parameters, such as market share or any other parameter, it said. After the finalisation of the first gram panchayat for each insurer, the council should share the list with IRDAI.
Similarly, the general insurers and health insurance players would be allocated gram panchayat in consultation with the General Insurance Council.
There are 40 general insurance companies at present, including 5 standalone health insurance companies, in the country.
IRDAI in 2022 committed to enable ‘insurance for all’ by 2047, where every citizen has an appropriate life, health and property insurance cover and every enterprise is supported by appropriate insurance solutions.
To attain this objective, efforts are being made towards creating a progressive, supportive, facilitative and forward-looking regulatory architecture to foster a conducive and competitive environment, leading to wider choice, accessibility and affordability to policyholders, it had said.
Edited by Swetha Kannan
