The union finance minister Shri. P Chidambaram on Friday asked the Insurance Regulatory and Development Authority (IRDA) to focus more on its developmental role to increase the insurance penetration in the country. Insurance penetration in India is below its need and potential. Awareness about general insurance is dismal. India is ranked at 52nd in the world in non-life insurance penetration, lower than Sri Lanka, Malaysia. “India has to go a long way to increase insurance penetration", he said Referring to Shri. TS Vijayan, the new chief of Irda, Mr. Chidambaram Said, “For the first time we have a former insurer as the head of IRDA and you have a mandate to develop the insurance industry. While regulations are important, development of the industry is equally important."
TS Vijayan is the former chairman of the country's largest insurer, Life Insurance Corporation (LIC) of India. Mr. Chidambaram was speaking at the launch of an IRDA-backed insurance awareness campaign by the General Insurance Council. “We have 27 general insurance companies in the country, yet the general insurance penetration is 0.71%,“ he said, adding that by every measure there is a long way to go. The insurance density for general insurance in India is less than $9, while it is $53 in China. Gross underwritten premium (GWP) of the sector was Rs 69,000 cr in 2012-13.
FM also emphasized that the insurance awareness campaign should not remain limited to metros like Delhi and Mumbai but should spread to the states like Bihar, Uttar Pradesh, Chhattisgarh and Uttarakhand, where insurance penetration and awareness is considerably low. “This campaign must go to other capitals, this campaign must go to second-tier towns,“ he added.
TS Vijayan is the former chairman of the country's largest insurer, Life Insurance Corporation (LIC) of India. Mr. Chidambaram was speaking at the launch of an IRDA-backed insurance awareness campaign by the General Insurance Council. “We have 27 general insurance companies in the country, yet the general insurance penetration is 0.71%,“ he said, adding that by every measure there is a long way to go. The insurance density for general insurance in India is less than $9, while it is $53 in China. Gross underwritten premium (GWP) of the sector was Rs 69,000 cr in 2012-13.
FM also emphasized that the insurance awareness campaign should not remain limited to metros like Delhi and Mumbai but should spread to the states like Bihar, Uttar Pradesh, Chhattisgarh and Uttarakhand, where insurance penetration and awareness is considerably low. “This campaign must go to other capitals, this campaign must go to second-tier towns,“ he added.
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