NEW DELHI: To increase insurance coverage of the poor, the government has notified micro-insurance regulations that will allow life and general insurers to tie up for offering a combined policy that will cover risks of lives, crop, huts, livestocks and tools at an affordable cost.

The IRDA (micro-insurance) Regulations 2005 allows insurers to issue policies with a maximum cover of Rs 50,000 for general and life insurance. An insurer can collect the premium for both life and general insurance components directly from the consumer or agents, it said.

Recognising the need to involve NGOs, self-help groups, micro-finance institutions, to distribute such products, IRDA has allowed them to act as micro-insurance agents along with certified insurance agents and brokers.

A micro-insurance agent can sell policy of only one life insurer and a general insurer. The commission for the micro-insurance agents will not exceed 10% of premium for single premium life insurance policies and 20% for other life policies.

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