To ensure easy accessibility of insurance products to all, IRDAI issued IRDAI (Rural, Social Sector and Motor Third Party Obligations) Regulations, 2024 (",b>RUSO & MTP Regulations").1 These regulations stipulate a minimum requirement of rural and social sector insurances, such as life insurance, general insurance, health insurance and motor insurance, that insurers must underwrite. The scope of social sector is extended to cover cardholders and beneficiaries under various schemes.
Subsequently, a master circular was issued in line with the RUSO & MTP Regulations, and it specifies that life, general and stand-alone health insurers will mandatorily insure a minimum percentage of lives (for life, health and accident insurance), dwelling and shops, and vehicles towards meeting rural, social sector and motor third-party obligations.22 Some of the key provisions of the master circular are as follows:
- all life insurers must insure a minimum percentage of lives in identified and allocated gram panchayats. Similarly, general insurers must insure (a) minimum percentage of dwelling and shops under fire insurance; (b) minimum percentage of vehicles under motor insurance; and (iii) minimum percentage of lives under health 20 Circular dated May 22, 2024. F. No. IRDAI/F&I/CIR/MISC/82/5/2024 21 Notification dated March 20, 2024. F. No. IRDAI/Reg/4/198/2024 22 Circular dated May 10, 2024. F. No. IRDAI/NL/CIR/RSS/77/5/2024 insurance and personal accident insurance to achieve complete saturation of the identified gram panchayats.
- detailed methodology is provided for arriving at the obligations with respect to rural, social sector and motor third party coverage; and
- processes to check compliance and essential reporting requirements are prescribed.
Footnote
1 Circular dated May 22, 2024. F. No. IRDAI/F&I/CIR/MISC/82/5/2024 21 Notification dated March 20, 2024. F. No. IRDAI/Reg/4/198/2024
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