1.    India has been seen to be a pioneer in the Micro-Insurance sector in the world and has provided an example with its Micro-Insurance regulations. 

2.    The IRDAI has received suggestions on allowing standalone insurers for transaction of exclusive Micro-Insurance business, as it may boost the Micro-Insurance penetration in India with geographical spread. 

3.    Considering the above, the competent Authority has decided to set up a committee with the following members to look into above aspects:

4.    The terms of reference of the committee are: 

a.    To assess the desirability and feasibility of formation of standalone Micro-Insurance Companies;

b.    To review the existing legal and regulatory framework to enable a standalone micro-insurance company Indian Insurance Company after analysing similar provisions in other jurisdictions;

c.    Recommend on the maximum sum insured per person which may be accepted by the proposed micro-insurance Company;

d.    Considering the aspect of ease of doing business, suggest on the applicability and or relaxation of extant Act / Regulatory provisions for proposed micro-insurance Company, which may be registered as an insurer.  The indicative regulatory aspects are as under:

   i)     Capital and Solvency;

   ii)    Underwriting, Product and Claims;

   iii)   Finance and Accounting;

   iv)   Investments;

   v)    Operations;

   vi)   Corporate Governance;

   vii)  Others

e.    Any other related matter;

5.    The Committee shall meet as often as required and submit its recommendations within three months of this order.

Suresh Mathur

Executive Director