According to the new draft micro-insurance norms as suggested by the insurance regulatory and development authority (IRDA), district cooperative banks and urban cooperative banks would be permitted to distribute micro-insurance products.
The IRDA has broached these norms for a wider public discussion before they are adopted in a final form.
The IRDA has said all micro-variable products should have a lock in period of five years and no surrenders would be allowed except partial withdrawals in some cases.
The IRDA expects reactions and feedback from the stakeholders soon.
Sources say the IRDA initiative may broaden the limit of operations of the cooperative banks. .
