, India
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IRDAI sets rural coverage mandates for insurers

Coverage providers must offer a minimum level of protection in villages.

The Insurance Regulatory and Development Authority of India (IRDAI) has mandated that all insurers must offer a minimum level of coverage in villages or gram panchayats.

All life insurance companies must insure a minimum percentage of lives as per the 2024 Rural, Social Sector, and Motor Third Party Obligations regulations. 

IRDAI mandates that life insurers aim for complete coverage of the selected gram panchayats.

The Life Insurance Council, in consultation with the Ministry of Panchayati Raj, will identify gram panchayats for rural sector obligations. 

After being identified, the council will inform each life insurer of the minimum number of panchayats to cover, based on market share. 

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Insurers then choose specific gram panchayats and share their selections with the council and other insurers to avoid overlap.

For India’s general insurers, they must insure a minimum percentage of dwellings and shops under fire insurance and vehicles under motor insurance. 

On the other hand, health insurers must cover a minimum percentage of lives under health and personal accident insurance. 

Gram panchayats will be allocated to these insurers in consultation with the General Insurance Council, following a methodology similar to that for life insurers.

 

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