MY VIEWS IN ECONOMIC TIMES ON INDIA'S LIFE INSURANCE SCENE

Economic Times Story on 19.12.12 : Standard micro-insurance products to hit market soon

Comments of MILAN K SINHA (PATNA)

19 Dec, 2012 11:56 PM

It is heartening to know that standard micro-insurance products are proposed to be launched soon and IRDA is considering such proposals with interest. IRDA's proposal for having 10 standard products in the market is also a welcome move. But the question is : why IRDA couldn't initiate such normal measures in the past and how it will guarantee that that its current proposal is going to be a reality in days to come? It is really a pity that institutions after institutions which have been established to safeguard the constitutional rights of every Indian, particularly those who have been economically and socially disadvantaged for decades , are not performing their duties as per the laid down norms and principles. If the Insurance sector in the country is not in good shape despite huge insurance potential and lot many players armed with state of art technology to tap the business, the players and their controllers are to share the responsibility of this discouraging situation. Industry watchers and media too didn't pay due attention on the going-ons of this sector closely to identify and indicate the wrong doers for rectifying the errors immediately . To say, serious introspection is the need of the hour at all levels to have standarised products and processes in entire insurance sector to take care of the insurance needs of common man in a sincere and honest manner.

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Economic Times Story on 18.12.12 : Life insurance policy sales fall 8.22 pc in FY'12: Government

Comments of MILAN K SINHA (PATNA)

18 Dec, 2012 08:44 PM

The fall in Life Insurance business during last fiscal in our country is a serious cause of concern for many reasons. We have as many as 24 players in the life Insurance space with giant LIC leading the show. It is a known fact that Life Insurance is the need of every Indian family, particularly the large population of common man and is a prerequisie for ensuring financial inclusion in real sense of the term. To say, we have a huge population who are still to be insured- to be specific, only 20% of total insurable population in the country is covered under Life Insurance schemes; Life Insurance sector is a big opportunity area - the fifth largest Life Insurance market in the emerging insurance economies globally and the Life Insurance penetration in India is only 4.40%. Then why this depressing growth story? It is because of lack of customer friendly environment in Indian Insurance market coupled with frequent but not well thought of interventions by the Govt. and the regulator. The large scale mis-selling of policies which has been the outcome of lack of proper mechanism for controlling and monitoring this important sector of the economy. The service issues have been very serious in this sector. Now, its time to have sincere introspection by all concerned including Govt. and IRDA to do the needful to bring the large uninsured population within social security net by offering affordable policies with proper service bench marks.

                                             Will meet again with Open Mind. All the Best.