An Overview of Micro Insurance Industries in India

Micro insurance is one of the unique and important segments of insurance which provides financial assistance to the poor people in the country. Reaching the micro insurance to all is also a part of financial inclusion. The IRDA on 30th November 2005 regulation act micro insurance products was implemented in India. The salient feature of the life insurance, Health insurance, Crop insurance, Lives stock insurance or cattle insurance and Asset insurance is product offer to low income people. According to IRDA the term micro insurance comprises two words “Micro” which means “Affordable to the poor” and Insurance means “Risk Pooling to compensate to individual and group”. Micro insurance is a key element in the financial services package for mass people, particularly for economically weaker section of people. The poor people face more risks than the well off, but more importantly they are more vulnerable to the same risk. With this view the present paper tries to discuss the distribution of micro insurance in India