Earlier this year, the regulator had constituted a committee for review of IMF regulations.
Based on the recommendations of the panel, Irdai has proposed several changes in the existing framework governing IMFs.
As part of the proposed changes, Irdai is considering to reduce the net worth requirement to Rs 5 lakh for applicants opting for an aspirational district. The NITI Aayog has designated 117 districts in 28 states as aspirational districts.
The current capital requirement for registration as an insurance marketing firm is minimum Rs 10 lakh.
Irdai has also proposed expansion of the basket of products which can be solicited or procured by an IMF to include group insurance products for Micro Small and Medium Enterprises (MSMEs), crop insurance for non-loanee farmers and combi products.
Irdai has sought comments from stakeholders on the proposed changes by December 15.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)