About 67% of salaried class opt for govt. banks for insurance: ASSOCHAM

Sixty seven per cent of salaried employees to go in for government owned companies for insurance purposes as they feel such institutions more credible and secure while 25% of them still prefer private banks for the same and 8% continue to show their apathy to either of the two, according to findings of ASSOCHAM paper.

The governments owned insurers, led by the Life Insurance Corporation (LIC), maintain the top share in selling the insurance products and their penetration far outweighs their private sector peers, reveals the ASSOCHAM paper.

The findings of the ASSOCHAM contained at a study which it brought out on 'Growth and Emergence of Public and Private Sector Banks in India', in which over 1250 salaried employees, businessmen, lawyers have been interviewed.

However, when it comes to mutual funds, the private sector players are preferred among the salaried employees, though the sector itself remains a low key as the retail market investor does not yet find confidence. As much as 60% of salaried employees in all segments prefer private sector for mutual fund while only 20% opt for Public Sector Banks for the same. 20% are indifferent to either of the two sectors for parking their funds in mutual funds while 10% do not avail this service. 40% of employees prefer public sector banks for purposes of investment in bonds & securities as compared to 30% who prefer the private banks.

The insurance services provided by the public sector banks are preferred by 67% of the salaried employees, while only 25% go in for private banks for insurance purposes, and remaining 8% are indifferent to either of the two categories. This preference for public sector banks (PSBs) for insurance is mainly due to the fact that as a general perception, the employees find them reliable and secure especially at times when global down is catching up.

The consolidated preferences of salaried employees in public and private sector banks show an inclination towards the private banks.

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