Market regulator Insurance Regulatory and Development Authority (IRDA) today made changes in its regulation by allowing four nationalized General insurance companies viz: National Insurance, New India Assurance, Oriental Insurance and United India Insurance Company to sell products of the Agricultural Insurance Company Limited. The decision to permit the same was conveyed to all the top executives of these insurance companies and was also uploaded on the portal of the IRDA website.
According to IRDA this step is taken in order to make insurance crop popular in India. It further said that there is no much knowledge about crop insurance among Indian farmers and are growing crops without having adequate insurance coverage. This step will help to educate farmers on crop insurance and save them against unforeseen events.
These four nationalized companies, who are the promoters of Agricultural Insurance Company, can sell the insurance products through its agents. IRDA clarified that there will be no conflict of interest between AIC and the insurance companies as these companies are the promoters of AIC.
