Page 160 - India Insurance Report 2023- BIMTECH

148 India Insurance Report - Series II

objective is to provide cost-free medical services to more than 40% of the nation’s population. PMJAY
extends a health coverage of up to Rs. 5 Lakh, encompassing expenses associated with medications,
diagnostic examinations, medical procedures, and preliminary hospitalization charges. The program is
specifically designed to assist the most economically disadvantaged families in India. This initiative offers
complete insurance coverage without any charges to approximately 10 crore families, determined through
a socioeconomic census. These families have received health cards, which can be utilized to access
hospitalization benefits in all authorized hospitals throughout the country. The entire procedure is
conducted digitally.

3. Connectivity, Co-operative & Collaborative (3C) – The way forward

Our nation is currently commemorating Amrit kal with the goal of transforming India into a
developed nation by the conclusion of 2047, which marks the centenary of our independence. In alignment
with the government’s vision, the IRDAI and the insurance industry are committed too. One of the
stronger commitments will have to be the development of the rural sector. The IRDAI in its vision
“Insurance for All by 2047” aims that every citizen has an appropriate life, health and property insurance
cover and every enterprise is supported by appropriate insurance solutions. This includes the rural
sector as well. In this context, the 3C model, i.e. “Connectivity, Co-operative, and Collaborative, “could
be the way out for higher rural insurance penetration.

Connectivity : Connectivity is the primary means to reach out to - whether internet and mobile
or any other means. The Ministry of IT has already initiated the installation of optical fibre cables,
and it is anticipated that, very soon, all villages will have internet access. Furthermore, mobile
technologies such as 4G have already been deployed, and discussions are underway regarding the
implementation of 5G and 6G networks. This increased connectivity has significantly transformed
the operations of insurance companies, enabling them to use it for product launches, policy sales,
customer service, and even claims processing. Additionally, digital channels like CSCs and PoSP
will continue to play a crucial role in strengthening these capabilities further.

Cooperative Institutions : Rural India encompasses vast expanses, boasting a network of
cooperative societies. These cooperatives hold significant potential to benefit their local communities.
Recently, the Central Government has established a Ministry of Cooperatives and provided necessary
budgetary support for the improvement of IT infrastructure within these operating societies. These
village-level cooperative societies will be strengthened, enabling them to offer financial services,
including insurance. One can envision a scenario where over 65,000 cooperatives/PACSs transform
into insurance sales and service units. Such a transformation will make insurance services readily
available, in digital form, in rural areas.

Collaborative Products : The emergence of insurtechs now makes it possible to create and sell
customized insurance solutions tailored to individual needs. These policies can be seamlessly
integrated into specific requirements when purchasing an asset. For instance, a non-banking financial
company (NBFC) can arrange insurance cover for cattle when providing a loan for their purchase.