An IRDAI committee has suggested introduction of daily premium payment policies to ensure better awareness about insurance products among low-income groups.
The panel on 'micro-insurance' also suggested that the product benefits and terms have to be communicated in a simple manner so that customers can understand it easily. What the customer gets and what he/she should give, has to be clear for the customers.
The idea of micro-insurance is to provide low-income people with affordable insurance plans that can help them lead a financial stable life.
The panel has also come up with a case for ‘goal based savings products’ that can be utilized for children’s education and higher education purposes.
In India, people living below the poverty line comes to around 29.5 per cent of total population. Out of the 36 crore people, 10.2 crore live in urban areas whereas, 25.8 crore live in rural areas.