MFIN to launch natural catastrophe insurance cover for micro borrowers

The MicroFinance Institutions' Network is planning to introduce this product with Cholamandalam MS General Insurance as insurer

With India becoming one of the most climate risk-prone countries and the frequency and severity of natural catastrophe (NatCat) events increasing every year, which is impacting repayment capabilities of borrowers of microloans, and the micro lenders’ asset quality, the MicroFinance Institutions’ Network (MFIN) is planning to introduce an insurance product for borrowers to protect them against such natural catastrophe events.

MFIN, which has applied for a pilot project to the Insurance Regulatory and Development Authority of India (IRDAI) under regulatory sandbox, has now received the nod form to conduct the project. Cholamandalam MS General Insurance will provide the insurance cover