Irda wants kirana shops, chemists to sell micro-insurance

To promote penetration of insurance in the country, Irda has proposed to rope in kirana shopowners, chemists shops and petrol pump operators to sell micro insurance products.

Micro insurance products are schemes with low ticket size and targeted towards rural and urban poor.

“In order to broadbase the micro insurance business there is a case to expand the micro insurance agency base by adding few more distribution partners or Individuals,” Irda said in an exposure draft on Micro Insurance Regulations.

The Insurance Regulatory & Development Authority (Irda) proposes to allow individual owners of kirana shops, fair price shops, medical shops, petrol pumps, individual public call office (PCO) operators to be categorise as micro insurance agents.

“Since, these individuals have a physical presence and standing in these specific market segments as those of the existing Standalone Micro Insurance Agents, it is considered that they stand on similar footing along with standalone micro insurance agents,” the Irda said.

Currently some entities like non-government organisations (NGOs), Micro Finance Institutions (MFIs) and Self help Groups (SHGs) work as micro insurance agents. 

District Cooperative banks, Regional Rural Banks, primary Agricultural Cooperative societies, individual agents too work as micro insurance agents.