IRDAI panel suggests lower capital requirement for microinsurance firms

NEW DELHI: A committee constituted by the Insurance Regulatory and Development Authority of India (IRDAI) has suggested that the capital requirement for entities entering into the microinsurance segment should be lowered to Rs 20 crore. Currently the entry-level capital requirement is at Rs 100 crore under the Insurance Act. The 'Report of the Committee on the Standalone Microinsurance Companies' noted that the penetration of insurance is "all the more urgent" now in the context of the pandemic when millions of Indians, especially in the informal sector, have lost their livelihoods. It said that dedicated standalone microinsurance institutions can play a major role in such situations by making insurance affordable and available to low-income families, thereby providing a measure of risk mitigation and security. (IANS)

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