Microinsurance could soon be sold by local grocery stores, gas stations in India

Friday, February 7, 2014

Micro insurance products could soon be sold by local grocery stores, public call offices (PCOs), fuel outlets and ration shops in rural areas. However, insurance sector officials also believe this would hamper the need-based sale objective.

The Insurance Regulatory and Development Authority (Irda) has brought out a revised set of proposals on micro insurance products. Regional rural banks, micro finance institutions, district cooperative banks, non-government organisations, self-help groups, urban cooperative banks, banking correspondents and individual owners of kirana stores, PCOs, fuel outlets and ration shops will be allowed to sell these.

“Getting agents to sell micro insurance products is a big challenge. Kirana shops and PCOs neither have the skills nor the expertise. This might do more damage than increasing the penetration,” said a senior executive in a life insurance company.

Source: Business Standard (link opens in a new window)

financial inclusion, microfinance