There is a need for making micro insurance more affordable to the poorer sections of the society, according to J. Hari Narayana, Chairman, Insurance Regulatory and Development Authority (IRDA).

Speaking at the inaugural session of an education-training programme on micro insurance by the New Delhi-based Sa-Dhan here on Monday, he said there is a misconception about the parity between the Govt-sponsored micro health insurance schemes and those introduced by the private sector companies.

“Most of the schemes introduced by the Government are not strictly insurance as they have the social welfare objective. But the policy prescriptions on micro insurance should take into cognisance the business interests of the private insurers as well,” he said.

The interest of insurance companies in micro insurance segment has been growing, he observed, adding that the authority had so far approved 42 micro insurance products - 20 in life and 22 non-life.

"There has been a lot of activity of late as every day a product is coming to us for approval," he said.

Affordability was a key factor in micro insurance policies pertaining to health. "Micro insurance in India is led by the sum assured. I think it is better to see it in terms of annual income.

For example, in some health insurance plans, even if the premium instalment is low, annual premium goes up to Rs 42,000. How can the poor pay it at one shot?"he wondered.

"The universal health insurance scheme being implemented by governments in some States is the best in the world in terms of the cost of insurance", he added.