Micro insurance must focus more on risk cover: Irda chief

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Hyderabad, Aug 12: Irda chairman J Harinarayan felt the need for a change in the mind-set of insurance companies with respect to the micro-insurance products, which have to be focused on the risks at the micro level than on the lower premiums.

Speaking at the product launch meeting of Max New York Life here on Tuesday, Harinarayan said that the insurance companies should focus more on the risk cover than the lower premium for micro insurance. For instance, he said, the farmer has to face variety of risks from sowing to harvesting and if the insurance product offers proper cover at each of the risks would benefit the farmers. “These are the issues of designing and concern towards the human beings," he pointed out.

Responding to a question, the Irda chairman said that there is no need for altering any of the regulations as there are no complaints. The micro insurance is in its nascent stages and unless it picks up volumes, it would be improper to comment on its performance, he opined.

Earlier, Max New York Life chairman, Analjit Singh explained the product christened ‘Max Vijay’, a fixed premium policy at an affordable premium with flexible payment options.

The 10-year tenure policy is available with three premium payment options with a minimum enrollment premium of Rs 1,000, he said.  

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