Economically Vulnerable - Policy Holder

Economically Vulnerable

Insurance Regulatory and Development Authority of India (IRDAI) has created a special category of insurance policies called micro-insurance policies to promote insurance coverage among economically vulnerable sections of society. The IRDAI(Micro Insurance) Regulations,2015 defines and enables micro-insurance.


A micro-insurance policy is:

A general or life insurance policy with a sum assured of Rs 50,000 or less

A general micro-insurance product is any:

1 Health insurance contract

2 Any contract covering belongings such as



Tools or instruments or


3 Any personal accident contract

4 They can be on an individual or group basis

A life micro-insurance product is:

1 A term insurance contract with or without return of premium

2 Any endowment insurance contract or

3 A health insurance contract

4 They can be with or without an accident benefit rider and

5 Either on an individual or group basis

There is flexibility in the regulations for insurers to offer composite covers or package products that include life and general insurance covers together


Micro- insurance business is done through the following intermediaries:

1 Non-Government Organisations

2 Self-Help Groups

3 Micro-Finance Institutions

Click here to read more about micro-insurance