What is micro insurance policy?

What is the minimum sum assured under a micro insurance?

The minimum sum assured is Rs. 20,000 and the maximum is Rs. 50,000. On surviving to the date of maturity, sum assured is payable which is 110% of the total amount of premiums paid during the term of the contract.

Who are micro insurance agents?

Micro insurance Agents are a special category of insurance agents who support financial inclusion, i.e. the distribution of financial services at an affordable cost to the masses.

Is micro insurance profitable?

“Microinsurance is both profitable and scalable,” he was quoted as saying on the fund's website. The fund will invest in India, Pakistan, South Africa, Ghana and Kenya, it added.

What are the products of micro insurance?

The microinsurance products offered include weather index insurance designed to insure and disbursement maize and wheat farmers, personal accident, life, disability, and health insurance products.

What is surrender value?

Surrender value is the amount that a policyholder receives from the life insurer when he or she decides to terminate a policy before its maturity period. Suppose the policyholder decides on a mid-term surrender; in that case, the sum allocated towards the earnings and savings would be provided to him.

Which of the following are the issues with micro insurance?

Many of micro insurance products do not take care of problems like the adverse selection of products, moral hazards, and fraud in the transaction. There is still a need for progress in regulation that can be effective for consumer protection and service rendered by micro insurers.

What are the key features of microinsurance?

These definitions have much in common: microinsurance is insurance (as distinct from savings and credit) and applies principles of risk pooling; coverage is always contributory (i.e., schemes that are 100% subsidized would not qualify as 'microinsurance');

When did microinsurance begin?

Low income people live in unfavourable environments and vulnerable to many perils like sickness, accident, death and loss of property. They are more vulnerable to these risks than the rest of the population. The first Micro Insurance Regulations came in 2005 which was amended from time to time.

Is microfinance a bank?

Microfinance is a banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. Microfinance allows people to take on reasonable small business loans safely, and in a manner that is consistent with ethical lending practices.

What is the target group for micro insurance?

In essence, microinsurance operates the same as conventional insurance except that it is targeted at low-income households, specifically the working poor who have few or no financial reserves and incomes that fluctuate considerably.

How can microinsurance be improved?

What is a parametric trigger?

Parametric insurance (also called index-based insurance) is a non-traditional insurance product that offers pre-specified payouts based upon a trigger event. ... Parametric insurance policies have most frequently been implemented in developing economies, oftentimes for agriculture insurance.

How can I get IRDA license?

Regulation 4 of the regulations (i.e. IRDA (licensing of Insurance Agents) /Regulations, 2000) requires that a person desiring to obtain or renew a license to act as an insurance agent or a composite insurance agent shall possess the minimum qualification of a pass in 12th standard or equivalent examination conducted ...

Is the full form of IRDA?

Insurance Regulatory and Development Authority (IRDA) Act, 1999 spells out the Mission of IRDAI as: “... to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto......”

Who is not an insurance intermediary?

An Insurance Intermediary means individual agents, corporate agents including banks and brokers, insurance marketing firm. Insurance Intermediary also includes Surveyors and Third Party Administrators but these intermediaries are not involved in the procurement of business.

What are the uses of micro LIC?

LIC Micro Bachat Policy. This is a policy of LIC that aims to provide financial support to the policyholder's family in case of his death during the term of the policy. It also guarantees a lump sum for the surviving policyholder at the time of policy maturity.

What is LIC micro bachat plan?

LIC Micro Bachat Plan (Table No. 951) is a traditional, non-linked, participating micro-insurance plan that offers dual benefits of protection as well as savings. ... Under this policy, the insured can also avail loan during the policy tenure, provided full payment of premiums for at least 3 years.

What is microinsurance PDF?

Microinsurance is the protection of. low-income people against specific. perils in exchange for regular pre- mium payments proportionate to the. likelihood and cost of the risk involved.

How microinsurance help the economically challenged households?

This reveals that micro-insurance alleviates poverty since Micro-insurance provides financial support to the poor in the event of a disaster; Micro-insurance ensures social protection against disasters and shocks; it encourages savings; it provides employment and finally, it ensures asset accumulation.

Do you get money back if you cancel whole life insurance?

Do I get my money back if I cancel my life insurance policy? You don't get money back after canceling term life insurance unless you cancel during the free look period or mid-billing cycle. You may receive some money from your cash value if you cancel a whole life policy, but any gains are taxed as income.