Sa-Dhan Newsletter Volume 1 Issue 4

Micro-Insurance

Obligations of Insurers to Rural Social Sectors :

IRDA Notification

Rights, and Full Participation) Act, 1995 and who

F.No.IRDA/Reg./7/2000.--

may not be gainfully employed; and also includes

In exercise of the powers conferred by section 32C

guardians who need insurance to protect spastic

read with section 32B of the Insurance Act, 1938,

persons or persons with disability;

(4 of 1938), the Authority, in consultation with the

(h) All words and expressions used herein and not

Insurance Advisory Committee, hereby makes the

defined herein but defined in the Insurance Act,

following regulations, namely: -

1938 (4 of 1938), or in the Insurance Regulatory

Short title and commencement.----(1) These

and Development Authority Act, 1999 (41 of

regulations may be called the Insurance Regulatory

1999), shall have the meanings respectively

and Development Authority (Obligations of Insurers

assigned to them in those Acts.

to Rural or Social Sectors) Regulations, 2000.

Obligations.-- Every insurer, who begins to carry on

(2) They shall come into force from the date of their

insurance business after the commencement of the

publication in the Official Gazette.

Insurance Regulatory and Development Authority Act,

2. Definitions.-- In these regulations, unless the

1999 (41 of 1999), shall, for the purposes of sections

context otherwise requires -

32B and 32C of the Act, ensure that he undertakes the

(a) "Act" means the Insurance Act, 1938 (4 of 1938);

following obligations, during the first five financial

years, pertaining to the persons in---

(b) "Authority" means the Insurance Regulatory and

Development Authority established under the

(a) rural sector,

provisions of section 3 of the Insurance

(i)

in respect of a life insurer, --

Regulatory and Development Authority Act, 1999

(I) five per cent. in the first financial year;

(41 of 1999);

(II) seven per cent. in the second financial year;

(c)

"Rural sector" shall mean any place as per the

(III) ten per cent.  in the third financial year;

latest census which has--

(IV) twelve per cent. in the fourth financial year;

(i)  a population of not more than five thousand;

(V) fiften per cent. in the fifth year;

(ii) a density of population of not more than

of total policies  written direct in that year;

four hundred per square kilometer; and

(ii)  in respect of a general insurer,--

(iii) at least  seventy five per cent. of the male

(I) two per cent. in the first financial year;

working population is engaged in agriculture.

(II) three per cent. in the second financial year;

(III) five per cent. thereafter,

(d) "Social sector" includes unorganised sector,

informal sector, economically vulnerable or

of total gross premium income written direct in that

backward classes and other categories of persons,

year.

both in rural and urban areas;

(e) "Unorganised sector" includes self-employed

(b) social sector, in respect of all insurers, --

workers such as agricultural labourers, bidi

(I) five thousand lives in the  first financial

workers, brick kiln workers, carpenters, cobblers,

year;

construction workers, fishermen, hamals,

(II) seven thousand five hundred lives in the

handicraft artisans, handloom and khadi workers,

second financial year;

lady tailors, leather and tannery workers, papad

(III) ten thousand lives  in the third financial

makers,  powerloom  workers,  physically

year;

handicapped self-employed persons, primary milk

(IV) fifteen thousand lives in the fourth financial

producers, rickshaw pullers, safai karmacharis,

year;

salt growers, seri culture workers, sugarcane

cutters, tendu leaf collectors, toddy tappers,

(V) twenty thousand lives in the fifth year;

vegetable vendors, washerwomen, working

Provided that in the first financial year, where the

women in hills, or such other categories of

period of operation is less than twelve months,

persons.,

proportionate percentage or number of lives, as the

(f) "economically vulnerable or backward classes"

case may be, shall be undertaken.

means persons who live below the poverty line;

Provided further that, in case of a general insurer, the

(g) "other categories of persons" includes persons

obligations specified shall include insurance for crops.

with disability as defined in the Persons with

Provided further that the Authority may normally, once

Disabilities (Equal Opportunities, Protection of

in every five years, prescribe or revise the obligations

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