The talks also cover potential funding mechanisms for the scheme, including the use of disaster relief funds or small deductions on utility bills, according to a government official cited by Reuters.
The regulator is sharpening its focus on affordability and long-term resilience as insurers face mounting cost pressures from natural disasters, inflation, and limited reinsurance capacity.
Heavy monsoon rains since June have triggered catastrophic flooding and landslides across India and Pakistan, leaving more than 1,000 dead and hundreds of thousands displaced.
