The Hindu : Regulatory framework for NGOs and SHGs

Online edition of India's National Newspaper
Wednesday, Dec 10, 2003

Business

Business

Regulatory framework for NGOs and SHGs

By Our Special Correspondent

HYDERABAD DEC. 9. The Insurance Regulatory and Development Authority (IRDA) is working on evolving a regulatory framework to allow non-government organisations (NGOs) and self-help groups (SHGs) like DWCRA (Development of Women and Child in Rural Areas) to sell `micro insurance products', particularly to tap the immense insurance potential at the rural level, according to C. S. Rao, Chairman of IRDA.

Speaking to reporters on the sidelines of the 8th Insurance Summit 2003, organised by the Confederation of Indian Industry (CII) with the theme `Realising the growth potential', here on Monday, he said existing regulations were not sufficient to allow such groups to be distributors.

Discussions were also being held with insurance companies on this aspect, he said.

Earlier delivering the keynote address at the conference, Mr. Rao said opening up of the insurance sector to private participation had no impact in the rural areas (for life insurance), which was a matter of concern.

For India as a whole, the growth rate of life insurance has been 26 per cent and general insurance 23 per cent and the combined rate of about 25 per cent over the last two years was a fairly impressive achievement. But there is still a huge untapped potential.

The total premium income of Indian insurance industry, both life and non-life, for year ended March 2003, was Rs. 71,376 crores.

Of this, life insurance premium was 78 per cent (Rs. 55,738 crores) and rest general insurance.

In contrast, as of March 2001, life insurance premiums amounted to Rs. 34,898 crores and general insurance premiums Rs. 10,087 crores.

On concerns regarding the remuneration structure for insurance agents,

Mr. Rao said they were being examined by a committee formed by IRDA, and "We should be able to take a clear view on this matter soon".

Printer friendly page
Send this article to Friends by E-Mail

Business