Page 28 - Insurance Times June 2021

RURAL

INSURANCE IN

URBAN HANDS

N o financial compensation from insurance sector have actually failed to deliver any tangible relief to the

against the massive damages caused due to
downtrodden, which precisely got exposed during the
recent cyclone storm in coastal parts of India,
recent wrath of cyclone storm in more than 4 states of the
has exposed the outreach of insurance services
in rural India. With more than Rupees 2 lakh crore annual country. Together with the improvement in insurance
services through enhancing cost conscious competition,
premium income, Indian general insurance industry, much needed stress is equally required to be laid on
operating through 4 public sector insurers and 30 private extending its reach down to rural India also.
insurance companies, have so far, not been able to
penetrate even more than 3 percent of country's population. Private insurers, mostly confining their operations to urban
The fact already within the knowledge of government and India, aim at making hefty profits while as public sector
the insurance regulator, prefer to do away with penalties insurers, currently struggling for their survival, both
imposed on insurance companies rather than to ensure their defeating the actual purpose of delivery of insurance
outreach to vast rural India. services to the public. Lack of trained manpower at rural
level with unaggressive marketing strategy, Public sector
Tall claims by the authorities on success of their various companies equipped with about 100 rural insurance
welfare insurance schemes launched for the benefit of public, products, have not been able to make any substantial dent
in rural market.

About the author Earlier government insurers had even engaged the services
of the specialists exclusively for uplifting rural insurance
Dr. Daleep Pandita portfolio but with the passage of time, its very purpose got
Ex. Regional Manager diluted when due to their efficient competency, their
The New India Assurance Co. Ltd. services were utilized for other marketing activities
Chandigarh - Regional Office defeating the concept of their basic recruitment. While as

28 The Insurance Times, June 2021