Government to launch two insurance schemes

The central government is expected to launch in May or June the two insurance schemes announced by Finance Minister Arun Jaitley, said a senior official in Insurance Regulatory and Development Authority of India (IRDAI).

He said IRDAI will soon come out with regulations governing the commission payable by the insurers and their management expenses.

The two schemes -- Pradhan Mantri Jeevan Jyoti Bima Yojana (life insurance policy) and Pradhan Mantri Suraksha Bima Yojana (personal accident policy) which are not government-subsidised programmes are expected to increase the insurance penetration in the country.

Speaking at an event organised by the Madras Management Association (MMA) here late Monday D.D.Singh, member (distribution) IRDAI said: "The two schemes are likely to be launched in May or June. Already some banks have started collecting enrolment forms."

Under the life insurance policy, a person will be covered for Rs.200,000 for an annual premium of Rs.330.

The personal accident insurance provides cover for Rs.200,000 for accidental death and full disability and Rs.100,000 for partial disability for an annual premium of Rs.12.

On the issue of IRDAI coming out with new regulations which are in line with the amended insurance law passed by the parliament recently, Singh told IANS: "We will soon come out with the regulations governing payment of commissions and expenses of management."

The old law had stipulated the ceiling on commissions paid to agents and management expenses of insurers.

The new law has empowered IRDAI to prescribe the limits.

"Our regulations will be for industry as a whole and the limits may not be for insurer wise," Singh said.