Press Esc to close
Friday 29 August 2014
News updated at 9:27 PM IST
Weather
Max: 25.6°C
Min : 19.7°C
In Bangalore
Generally cloudy

Chidambaram asks insurance sector to focus on smaller towns

New Delhi, Apr 12, 2013 (PTI)

As India remains among the most under-insured countries in the world, Finance Minister P Chidambaram today asked the general insurance industry to spread awareness about the need for risk cover in smaller towns across the country.

"Awareness about general insurance is dismal (in our country)...India is ranked at 52nd in the world in non-life insurance penetration. We rank lower than Sri Lanka, Malaysia and we are worst among our peers, our famous peers, Brazil, China and Russia," he said here.

Launching a pan India insurance awareness campaign, he said India has to go a long way to increase insurance penetration.


"If you look at non-life insurance, general insurance, we have 27 companies yet the penetration of general insurance in the country is (only) 0.71 per cent," Chidambaram said.

The insurance density for general insurance in India is less than USD 9, while it is USD 53 in China. Gross underwritten premium (GWP) of the sector was Rs 69,000 crore in 2012-13.

The Finance Minister stressed that the campaign should not remain limited to metros like Delhi and Mumbai and focus on states such as Bihar, Chhattisgarh, Uttar Pradesh and Uttarakhand, where insurance penetration and awareness low.

"This campaign must go to other capitals, this campaign must go to second tier towns..., he said.

He also asked the Insurance Regulatory and Development Authority (Irda) to focus on development of the insurance sector, saying "while regulations are important, development of insurance industry is equally important".

The Minister said the sooner India wakes up to the imperative of insurance and sheds the tag of one of the most under-insured country in the world, it will be good for the country and the economy.

The awareness campaign with slogan 'Kar Lo Insurance. Kar Lo Rewind' of General Insurance Council is supported by Irda. The two-month multilingual campaign would be rolled out on television, radio and print media.

GIC in a statement said that a pre-campaign research was also carried out across 22 urban and rural locations to gauge the current awareness levels and perception regarding general insurance. The Council also plans to conduct a post campaign to study the impact of the drive.

Go to Top

Photo Gallery
Union Railway Minister Sadananda Gowda during a visit to Ernakulam railway station in Kochi ...

Union Railway Minister Sadananda Gowda during a visit to Ernakulam railway station in Kochi ...

Bomb Squad members checking a suspected bag found at Bandra Station in Mumbai ...

Bomb Squad members checking a suspected bag found at Bandra Station in Mumbai ...

Red Cross workers walk through an Ebola hit area  in Monrovia, Liberia ...

Red Cross workers walk through an Ebola hit area in Monrovia, Liberia ...

Models take part in awareness campaign 'Save Ganga and Green India' in Bhopal ...

Models take part in awareness campaign 'Save Ganga and Green India' in Bhopal ...

Siddaramiah presenting kit to a beneficiary  during launch of 'Pradhan Mantri Jan-Dhan Yojana' ...

Siddaramiah presenting kit to a beneficiary during launch of 'Pradhan Mantri Jan-Dhan Yojana' ...

Ganesh idol made of dry fruits ahead of Ganesh Chaturthi festival in Mumbai ...

Ganesh idol made of dry fruits ahead of Ganesh Chaturthi festival in Mumbai ...

A young girl viewing Ganesh statues for sale on the eve of the Ganesh Chaturthi in Jaipur ...

A young girl viewing Ganesh statues for sale on the eve of the Ganesh Chaturthi in Jaipur ...

Team owners Sachin Tendulkar and Ranbir Kapoor during the launch of Indian Super League ...

Team owners Sachin Tendulkar and Ranbir Kapoor during the launch of Indian Super League ...

John Abraham, signs a football during the launch of the Indian Super League, in Mumbai ...

John Abraham, signs a football during the launch of the Indian Super League, in Mumbai ...

Founding chairperson Nita Ambani at the launch of the Indian Super League in Mumbai ...

Founding chairperson Nita Ambani at the launch of the Indian Super League in Mumbai ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523