MODEL INSURANCE VILLAGES
CONTEXT
At a time when the Covid pandemic is raging across the country, the Insurance Regulatory and Development Authority of India(IRDAI) has come out with the concept of model insurance villages to cover the entire population.
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CONCEPT OF MODEL INSURANCE VILLAGE (MIV)
The idea is to offer comprehensive insurance protection to all the major insurable risks that villagers are exposed to and make available covers at affordable or subsidised cost.
In order to make the premium affordable, financial support needs to be explored through NABARD, other institutions, CSR (Corporate Social Responsibility) funds, government support and support from reinsurance companies.
It may be implemented in a minimum of 500 villages in different districts of the country in the first year and increased to 1,000 villages in the subsequent two years.
Every general insurance company and reinsurance company accepting general insurance business and having offices in India needs to be involved for piloting the concept.