IFFCO-TOKIO General Insurance Company (GIC) has launched a new initiative to enhance insurance accessibility in India’s under-covered communities, marking its 25th anniversary. The company has partnered with multiple cooperative societies to distribute micro insurance packages, aligning with the Insurance Regulatory and Development Authority of India (IRDAI)’s vision of ‘Insurance for All by 2047’. IFFCO-TOKIO GIC is a joint venture between the Indian Farmers Fertilizer Cooperative (IFFCO) and Japan’s Tokio Marine Group, established in 2000 with the principle of affordable insurance.
The company’s micro insurance packages will include health insurance, motor insurance, personal accident cover, and package policies combining multiple coverages at minimal cost. These policies have lower premiums and simplified claim procedures, making them accessible and practical for rural and informal sector workers. The distribution model through cooperative societies allows for better awareness, trust, and reach in semi-urban and rural regions.
IRDAI’s ‘Insurance for All by 2047’ goal aims to provide every Indian with access to at least basic life, health, and property insurance by the time the country marks 100 years of independence. IFFCO-TOKIO’s alignment with this mission signifies the contribution of private players to financial inclusion and social security, bridging the urban-rural divide in insurance penetration. Despite rising awareness, India’s insurance penetration remains around 4% of GDP, far below global averages. The micro insurance market is crucial in boosting resilience against financial shocks like illness, accidents, or crop failures.
The key takeaways from IFFCO-TOKIO’s initiative include its 25th anniversary celebration, partnership with cooperatives to distribute micro insurance, support for IRDAI’s ‘Insurance for All by 2047’ vision, and focus on affordability, simplified claims, and cooperative-led distribution in rural India. The company’s products include health, motor, personal accident, and package policies, all designed to expand protection at the grassroots level. By working together with cooperative societies, IFFCO-TOKIO aims to increase insurance accessibility and contribute to India’s socioeconomic growth and the evolving aspirations of its people.