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Microinsurance

Microinsurance is a term increasingly used to refer to insurance characterized by low premium and low caps or low coverage limits, sold as part of atypical risk-pooling and marketing arrangements, and designed to service low-income people and businesses not served by typical social or commercial insurance schemes.

At present, all insurance companies, both life and non-life in India, are mandated to do 20 per cent of their business from micro and rural insurance policies. In 2009-10, life insurers earned new business premium of Rs 401.641 crore from micro-insurance policies.

Micro-insurance is not a profitable business segment for insurance companies because the premium generated is very low. For most insurance companies, distribution costs of micro-insurance products is often more than total premium earned.

Partial List of Micro Insurance Products

LIC's Jeevan Mangal
SBI Life Grameen Super Suraksha
ICICI Pru Sarv Jana Suraksha
Bajaj Allianz Jana Vikas Yojana
Birla Sun Life Insurance
Bima Suraksha Super
ING Vysya Saral Suraksha
Met Vishwas
Tata AIG Sumangal Bima Yojana
Sahara Sahayog
SUD Life Paraspar Suraksha Plan
DLF Pramerica Sarv Suraksha
IDBI Fortis Group Microsurance Plan

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