Insurance II Session 17

8/9/2019 Insurance II Session 17

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IRDA

Rural or Social Sector Regulations

INSURANCE II

Session 17


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Insurance Regulatory and Development Authority

(Obligations of Insurers to Rural or Social Sectors)

Regulations, 2002


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IRDA (Obligations of Insurers to Rural

or Social Sectors) Regulations, 2002

Definitions

Rural sector means any place which meets the

following criteria--

a population of less than 5000;

a density of population of less than 400 per sq kms.; and

more than 25% of the male working population is engaged in

agricultural pursuits.

Workers falling under agricultural pursuits are:

Cultivators

Agricultural labourers

Workers in livestock, forestry, fishing, hunting and plantations,

orchards and allied activities


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Social Sector:

unorganised sector

informal sector

economically vulnerable orbackward

classes

other categories of persons, both in rural

and urban areas


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Unorganised Sector:

Self-employed persons such as agricultural labourers,

bidi workers, brick kiln workers, carpenters, cobblers,

construction workers, fishermen, handicraft artisans,

handloom and khadi workers, lady tailors, leatherand

tannery workers, papad makers, powerloom workers,

physically handicapped self-employed persons, primary

milk producers, rickshaw pullers, safai karmacharis,

salt growers, seri culture workers, sugarcane cutters,tendu leaf collectors, vegetable vendors, working

women in hills, or such other categories of persons


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Informal sector: includes small scale, self-employed workers typically at a low level of

organisation and technology, with the primary

objective of generating employment and income,with heterogeneous activities like retail trade,

transport, repairand maintenance, construction,

personal and domestic services and

manufacturing, with the work mostly labour

intensive, having often unwritten and informal

employer-employee relationship;


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Economically vulnerable or backward

classes: persons below the poverty line

Other categories of persons: includes personswith disability as defined in the Persons with

Disabilities (Equal Opportunities, Protection of Rights,

and Full Participation) Act, 1995 and who may not be

gainfully employed; and also includes guardians who

need insurance to protect spastic persons or persons

with disability


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OBLIGATIONS OF INSURERS

RURAL SECTORFinancial

Years

Life Insurers

Total Policies (in %)

Non-life Insurers

Gross Premium Income (in %)

1st 7 2

2nd 9 3

3rd 12 5

4th 14 5

5th 16 5


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OBLIGATIONS OF INSURERS

SOCIAL SECTORFinancial Years No. of Policies

(in 000s)

1st 5

2nd 7

3rd 10

4th 15

5th 20


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RURAL OBLIGATIONS OF INSURERS

Amendments in 2008

The rural obligations after the sixth financial

year fora life insurer should have,

18 per cent of the total policies written direct in the

7th financial year

19 per cent in the 8th and 9th financial years

20 per cent in the 10th financial year


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Amendments in 2008

For LIC of India, the regulator has prescribed:

24% rural polices (of the total policies written) for

2007-08

25% rural polices (of the total policies written)

for 2008-09 to 2009-10


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Insurance II Session 17

Documents

Transcript of Insurance II Session 17