Only 3 out of 100 people in India have a life insurance policy: Economic survey


New Delhi: According to the latest economic survey published by the Ministry of Finance, only 3 out of 100 people have a life insurance policy in India. This figure stood at 2.82 in 2019. The cumulative insurance coverage, including non-life insurance coverage, amounted to 4.2.Read also – Capital expenditure in relation to GDP: the economic study predicts growth and suggests reforms to accelerate the pace | 10 dots

The figures for non-life insurance cover were less good. Only 1 in 100 people had a non-life insurance policy in India, according to official figures. However, the figure has steadily increased over the past decade. In 2011, non-life insurance penetration was 0.70. Also Read – Tomato and onion prices get special mention in this year’s economic survey

Life insurance penetration has also increased steadily since 2014. In 2014, life insurance penetration in the country stood at 2.6. It was much higher at 3.4 in 2011. The figure for 2021 still lags behind the 2011 penetration. Read also – Budget 2022: what do MSMEs expect from the next budget? The expert says; Watch the video

The economic study states, “In India, insurance penetration was 2.71% in 2001 and has steadily increased to 4.2% in 2020. In 2020, life insurance penetration in India is 3.2% and non-life insurance penetration is 1 percent. cent (Tables 15 and 16). While India is on par with the international average in terms of life insurance penetration, we lag behind in terms of non-life insurance. Globally, insurance penetration was 3.3% for the life segment and 4.1% for the non-life segment in 2020.”

Interestingly, Finance Minister Sitharman in the 2021 budget said the government would privatize a public sector insurance company in the coming year. However, this plan was not implemented.

The government, on the other hand, has planned the IPO of LIC and according to media sources, the IPO will hit the Indian stock markets by March 31, 2022. This is expected to provide a major boost to public finances and will take it one step closer to meeting its divestment target of Rs 1.75 lakh crore.


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