萬國法律事務所

Taiwan’s Financial Supervisory Commission of the Executive Yuan (“FSC”) recently approved the first micro-insurance policy in Taiwan. The policy was issued by Cathay Life Insurance Co. and it aims to provide basic accidental injury protection to the economically disadvantaged.

Micro-insurance typically refers to insurance policies featuring low premiums and low caps or low coverage limits. The micro-insurance currently promoted by the FSC is based on the idea of risk-pooling and is provided in the form of commercial insurance rather than social welfare.

According to Cathay Life Insurance, holders of the new policy will have to pay a premium of NT$ 197 for a policy with a maximum death or casualty benefit coverage of NT$ 300,000. Single individuals with annual earnings of less than NT$ 250,000 or double-income families with annual earnings of less than NT$ 500,000 are eligible to purchase the new policy. Other economically disadvantaged persons covered by this program are native Taiwanese, fishermen and those who have been supported by social welfare groups. It is estimated that about one million people would benefit from this program.

Following Cathay Life Insurance, four other insurance companies are now seeking FSC approval to provide similar micro-insurance policies.