Three years ago, a proposal to offer products on premium installments came into the insurance sector. The question was who will fund the scheme and how much interest should be charged. As sector entities, insurance companies did not have the legal right to engage in other businesses. Nothing moved after that.
In 2018, insurers are looking at whether having premium financing options would help them get more customers into the books. On one hand, this will need a nod from Reserve Bank of India (RBI) for entities regulated by it and on the other, the insurance laws will have to be amended.
