Rural insurance will see a fresh fillip with the introduction of a new policy which does away with the manadatory health checks for Life Insurance.

The initiative by Department of Posts will launch a Micro Life Insurance policy - no more require the insurees to disclose their present health condition or diseases at the time of buying the policy. This is clearly aimed at expanding the Life Insurance coverage in rural India.

The proposed insurance scheme, which can be availed by economically weaker sections (EWS) of the society and particularly women, will provide a risk cover up to Rs 25,000.

The official communication said "The aim is to cover around one-tenth of Indians and become one of the potent players in the Indian insurance sector by easing out the procedural formalities that precedes purchase of any life insurance scheme."

There is no doubt that the new scheme is customer friendly, but the postal department will also put in place systems and processes to address the issue of fake claims.

1. To ensure that relaxation over disclosing the insuree’s health condition does not lead to wrong claims, the claimant has to file a death certificate issued by a government doctor on the deceased’s cause of death, the official said.

2.If the medical report says that the insuree was suffering from any ailment that existed prior to the purchase of the insurance policy, the postal department has an option not to honour the insurance claim.

3.The policy premium will vary according to the age of the insured and the duration of the policy.

India Post expects to cover around 100 million Indians by the end of 2011 under the scheme, this policy is assumed to play a major role in attaining this objective.