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Micro-Insurance and Standalone Insurers (SAMIs) Explained

4 November 20251 min read
BANKING & FINANCEMicro-Insuranceand StandaloneInsurers (SAMIs)Explained4 November 2025safalsetu.com

Why in the news

Experts urged dedicated insurers for rural families, informal workers and other underserved groups.

Key facts

  • SAMIs would sell only micro-insurance: low-cost, tech-driven life, health or property cover.
  • Yardstick: lives covered, not premium collected; shared digital platform and NGO distribution.
  • Softer solvency margin, expense limits and rural/social obligations, with policyholder protection intact.

Lessons from small finance banks

  • Begun in 2015 for financial inclusion; they must lend 75% to priority sectors, keep half of their loans below ₹25 lakh, and open a quarter of branches in rural areas without banks.
  • Growth: 48% CAGR in deposits, 29% CAGR in AUM.

Significance

  • Lowers risk of debt traps and supports Insurance for All by 2047.

Exam angle

  • Regulator: IRDAI; SFBs started in 2015.

Test yourself

1. What minimum capital was proposed for Standalone Micro-Insurance Companies (SAMIs) in India?

Notes: ₹50 crore instead of the usual ₹100 crore for regular insurers.

2. In which year did the IRDAI committee on SAMIs report that they could cover over 500 million poor Indians?

The IRDAI Committee on SAMIs dates to 2020.

3. Per the notes on micro-insurance, small finance banks must lend what share to the priority sector?

Small finance banks follow 75% priority sector lending.

This topic is part of Daily Current Affairs 4 November 2025 (15 topics).

All topics of the dayDay quizNovember 2025

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