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Under the premium financing facility, the customer will take a loan of the premium amount from the insurance company itself and later pay it as EMI. With this, their policy will be renewed on time and they will always be insured.
Insurance for future safety (Insurance) is extremely important. Insurance not only provides protection to your dependents in case of mishaps, but also covers diseases. Despite having so many benefits, many people are not able to buy insurance because they do not have the money to pay the premium. Now the insurance regulator IRDA (IRDAI) is in preparation to overcome this problem. IRDA Premium Financing to overcome this problem (Premium financing) is considering starting. IRDA’s plan is that people get a loan for the premium of insurance and they can pay it later in installments (EMI). At present, such a system does not exist in India.
IRDA is preparing that both retail and corporate customers can take a loan to pay premium to buy insurance and pay this money gradually in the form of installments. With this, they will not be burdened to pay a large amount of premium in one go. Once this system is implemented, it will work in such a way that the finance provider will pay the premium to the insurance company, after which they will collect the loan installments from the customer through monthly installments. In case the customer fails to repay the loan installments, the insurance company will refund the loan balance to the finance provider on a pro-rata basis.
Fast growing insurance market
This can help in increasing the reach of insurance in India. Large scale people may be able to come under the ambit of insurance coverage. According to a report by consultancy firm Redseer, the insurance market in India is expected to grow to $222 billion in the financial year 2025-26 due to the increasing awareness of middle class insurance and the digital penetration of products.
Now health, general insurance products can be offered without approval
Recently, the insurance regulator IRDAI has allowed insurance companies to offer health and most general insurance products without its approval. This move will improve the ease of doing business. Also, insurance companies will be able to offer their products to customers without regulatory approval. IRDA has changed the Use and File procedure for all health and almost all general insurance products to bring India fully under insurance. This step has been taken as part of the reform measures to bring India completely under insurance.
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