In order to increase insurance penetration and expand the protection quotient, a panel appointed by the insurance regulator has suggested around 14 ‘micro combi’ insurance products. The products would be a combination of covers offered on a modular basis including life, non-life and health products. One can select a combination of any products, but compulsorily include a life, a non-life and a health product.
The panel has suggested that insurers will have to offer the product either as a group or an individual product and the premium components of all risks will be separately mentioned at both pre-sale and post-sale stage. The health insurance and personal insurance coverage can be extended to the family of the policyholder, who is the proposer. On expiry of the policy, the policyholder can migrate to an independent life, general or health insurance policy, if he decides not to renew the combi product.
The underwriting of respective sections will be done by respective insurance companies. The General Insurance Council and the Life Insurance Council can enter into an agreement for uniform risk coverage premium rates, exclusions, etc.
The panel underlined that the standard products which are there in the market will provide ideal coverage, albeit with a restricted sum insured, and a mix and match of these products will provide the required flexibility. Some of the standard products suggested are: Saral Jeevan Bima for sum assured of Rs 5 lakh; Saral Jeevan Pension in which minimum annuity would be Rs 1,000 per month and the maximum Rs 5,000 per month; Bharat Griha Raksha Policy for sum insured of up to Rs 5 lakh and Bharat Sookshma Udyam Suraksha for sum insured up to Rs 10 lakh across all insurable asset classes at any one location and Arogya Sanjeevani health insurance for maximum sum insured of Rs 5 lakh.
The other products suggested by the panel include alternate accommodation/ increased cost of working for small businesses for Rs 750 per day for maximum of 30 days; personal accident death, permanent total disability for Rs 3 lakh; critical illness cash benefit for sum insured of Rs 1 lakh. For critical illness policy, the insured person will be examined by a panel of doctors of the insurer and lumpsum payment will be done in case of a claim. The waiting period for this cover will be 90 days from the inception of the policy.
The panel has suggested combi micro insurance products for livestock, crop insurance, poultry, aquaculture and loss of earnings cover. For a maximum sum insured of Rs 2 lakh, a salaried/ self-employed policyholder aged 18-70 years will be covered for loss of income due to unforeseen incidents such as pandemic, accidents, etc.