FM wants greater penetration in the non-life insurance sector

'India remains amongst the most underinsured countries in the world, as non-life insurance sector has a penetration of only 0.7% in the country

As India remains amongst the most underinsured countries in the world, Finance Minister P Chidambaram today said there is a need to increase penetration and coverage of non-life insurance in the country.

"There is a need to take immediate action by the non-life insurance sector to increase penetration and coverage of the non-life insurance in the country...There is a need to increase insurance density in the country as well," Chidambaram said.

He was speaking at a function here to launch mediclaim facility for the farmers holding Kisan Credit Cards (KCC) issued by Dena Bank under a tie-up with UIIC.

While complimenting Dena Bank and United India Insurance Company for introducing innovative schemes for the benefits of farmers, the Finance Minister expressed concern over lower penetration of non-life insurance sector.

"India is one of the most under-insured country in the world as non-life insurance sector has a penetration of only 0.7% in the country," Chidambaram said.

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 crore in 2012-13.

The Minister said on successful implementation of the mediclaim scheme, it can be considered for implementation on a larger scale.

Chidambaram handed over mediclaim policies and ID cards to six farmers of different States holding KCC of Dena Bank.

Speaking on the occasion, Dena Bank CMD Ashwani Kumar said this mediclaim facility will be available to KCC holder of Dena Bank and his spouse and two children under a tie up with UIIC. This will be under Group Health insurance cover.