Revision of law regarding microinsurance

Supervisory authorities (IRDA) have introduced amendments in the legislation governing microinsurance, with main changes targeting life products. The latter must now provide a five-year freeze period from underwriting date. However, in the second year, partial refunds are permitted provided that a minimum capital equivalent to one year's premium is maintained.

Another important change: rural banks, microfinance institutions, cooperative banks, non-governmental organizations, support groups, gas stations, stores and rural telephony centers are authorized to sell these policies.