Eco Survey 2018: Crop, motor policies drove non-life sector to 33% growth

Crop, motor and health insurance policies majorly enabled the non-life insurance sector to log 33 per cent growth in 2016-17, the Economic Survey 2017-18 said on Monday.

According to the Survey, tabled in Parliament on Monday by Finance Minister Arun Jaitley, during 2016-17, the Gross Direct Premium (GDP) of non-life insurers (within India) was Rs 1.30 trillion, registering 33 per cent growth (highest ever since 2000-01).

Crop insurance, motor sales, health insurance and others helped the industry report this growth.

On the other hand, the life insurance industry recorded a premium income of Rs 4.18 trillion as against Rs 3.67 trillion in the previous financial year, registering a growth of 14.04 per cent, the Survey said.

As regards the spread of insurance in the country, the Survey said the insurance penetration which was 2.71 per cent in 2001, increased to 3.49 per cent in 2016 (life 2.72 per cent and general or non-life 0.77 per cent).

Insurance penetration is defined as the ratio of premium underwritten in a given year to the gross domestic product (GDP).

The insurance density in India, which was $11.5 in 2001, has increased to $59.7 in 2016 (life 46.5 and general 13.2).

Insurance density is defined as the ratio of premium underwritten in a given year to the total population (measured in US$ for convenience of international comparison), the Survey said.