Professional Documents
Culture Documents
Session 19
IRDA Regulations, Meanings of Rural and Social Sectors, Provisions Related to Insurance Business in Rural and Social Sectors
Social Sector:
unorganised sector informal sector economically vulnerable or backward classes other categories of persons, both in rural and urban areas
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Unorganised Sector:
Self-employed persons such as agricultural labourers, bidi workers, brick kiln workers, carpenters, cobblers, construction workers, fishermen, handicraft artisans, handloom and khadi workers, lady tailors, leather and tannery workers, papad makers, powerloom workers, physically handicapped self-employed persons, primary milk producers, rickshaw pullers, safai karmacharis, salt growers, seri culture workers, sugarcane cutters, tendu leaf collectors, vegetable vendors, working women in hills, or such other categories of persons
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Informal sector:
includes small scale, self-employed workers typically at a low level of organisation and technology, with the primary objective of generating employment and income, with heterogeneous activities like retail trade, transport, repair and maintenance, construction, personal and domestic services and manufacturing, with the work mostly labour intensive, having often unwritten and informal employer-employee relationship;
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IRDA (Obligations of Insurers to Rural or Social Sectors) Regulations, 2002 Economically vulnerable or backward classes:
persons below the poverty line
OBLIGATIONS OF INSURERS
RURAL SECTOR
Financial Years 1st 2nd 3rd 4th 5th Life Insurers
Total Policies (in %)
Non-life Insurers
Gross Premium Income (in %)
7 9 12 14 16
2 3 5 5 5
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OBLIGATIONS OF INSURERS
SOCIAL SECTOR
Financial Years 1st 2nd 3rd 4th 5th No. of Policies (in 000s) 5 7 10 15 20
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Amendments in 2008
The rural obligations after the sixth financial year for a life insurer should have,
18 per cent of the total policies written direct in the 7th financial year 19 per cent in the 8th and 9th financial years 20 per cent in the 10th financial year
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Amendments in 2008
For LIC of India, the regulator has prescribed: 24% rural polices (of the total policies written) for 2007-08 25% rural polices (of the total policies written) for 2008-09 to 2009-10
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Amendments in 2008
For LIC of India, the regulator has prescribed: 24% rural polices (of the total policies written) for 2007-08 25% rural polices (of the total policies written) for 2008-09 to 2009-10 In the social sector, LIC should provide cover to 25 lakh lives each from 2007-08 to 2009-10.
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