Premium financing: Insurance companies will give insurance even if you do not have money, know what is the plan of the government

for future security Insurance is a must. Insurance not only protects your dependents in the event of an accident but also covers the cost of illnesses. Despite the many benefits, many people cannot afford to buy insurance because they do not have the money to pay the premiums. now insurance regulator IRDAI Preparing to solve […]
 


Premium financing: Insurance companies will give insurance even if you do not have money, know what is the plan of the government

for future security Insurance is a must. Insurance not only protects your dependents in the event of an accident but also covers the cost of illnesses. Despite the many benefits, many people cannot afford to buy insurance because they do not have the money to pay the premiums. now insurance regulator IRDAI Preparing to solve this problem. irda To overcome this problem, we are considering introducing premium financing. IRDA has a plan that people get loan for insurance premium and they can pay it in later installments. (EMI) I can pay. Presently 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 this money can be repaid 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, then they will collect the loan installment from the customer through monthly installments. If the customer fails to pay the loan installments, the insurance company will refund the loan balance to the finance provider on a pro-rata basis.

booming insurance market

This can help increase the penetration of insurance in India. A large number of people can 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 FY 2025-26 due to growing awareness about digital penetration of middle class insurance and products.

Health, general insurance products can now be offered without approval

Insurance regulator IRDAI recently allowed insurance companies to offer health and most general insurance products without its approval. This move will make it easier to do business. Also, insurance companies will be able to offer their products to customers without regulatory approval. IRDA has revised the usage and filing procedure of all health and almost all general insurance products to bring India fully under insurance. The move is part of a reform drive to bring India fully under insurance.