Rich in choice

Irda's exposure draft aims to make standard products more flexible & simple to ensure better coverage for economically weaker sections

To provide a comprehensive insurance package to the economically weaker sections in rural and urban areas, the Insurance Regulatory and Development Authority (Irda) has come out with a draft exposure to make standard products more flexible and simple. The products will have defined options and provide choice and flexibility to customers to cater to individual circumstances.

For a term cover, the regulator has fixed the minimum sum assured at R40,000. The base term plan will include term life, critical illness and personal accident partial and permanent disability (PAPPD) as mandatory cover; the remaining covers can be offered as riders or add-ons.

Under additional plans, the cover offered would be the same as in the base plan. However, the sum assured options would range from R40,000 to R2 lakh with multiples of R10,000 for the term life cover.

As part of life insurance, health insurance, pre- and post- hospitalisation, and a lump sum amount will be payable on maturity. In general insurance cover, fire dwelling, fire assets, such as pump set, agricultural tools, farm machinery and firm stocks including livestock, will be included. The exposure draft on composite package of standard insurance products for rural and social sector mentions that the sum assured or insured will be linked between lines of business ó 100% for death cover in term life, 200 to 300% for PAPPD, 25-50% for each of health insurance and critical illness.

The minimum entry age for the cover will be 18 years and maximum age will be 50. For life cover, the maximum age for continuing of cover in all cases will be 70 years and there will not be any exit age for health insurance cover. The standard product may be extended to the family members at the option of the insured.

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