Page 35 - Insurance Times February 2022

EXPECTATIONS FROM

UNION BUDGET

2022-23 FOR THE

INSURANCE SECTOR -

AN ECONOMISTS

PERSPECTIVE

I. Introduction However, India lags both in insurance penetration and
density compared to other developed countries. In
Over the years with persistent Government's efforts, the
insurance penetration (premiums to GDP) in India has insurance penetration US is at 12.0%, UK 11.10%, in Asian
countries like Japan at 8.10%, South Korea 11.60% and
increased from 2.71% in FY01 to 5.20% in FY09 but thereafter
Singapore 9.50% and much below the world average of
the level of penetration was declining and reached 3.30% in
insurance penetration of 7.40% (Life: 3.30& Non-life: 4.10
FY14. To push it further, in 2015 Government of India has
(Swiss Re, Sigma; 4/2021).
launched two insurance schemes under Jan Suraksha, - namely
Pradhan Mantri Suraksha Bima Yojana (PMSBY) that covers
The Jan Suraksha schemes has helped in spreading the
accidental cover of Rs 2 lakh with Rs 12 premium and Pradhan
awareness about insurance, especially in the rural landscape.
Mantri Jeevan Jyoti Bima Yojana (PMJJBY) for life cover of Rs
Till November 2021, cumulatively there were 11.46 crore
2-lakh with Rs 330 premium - to provide insurance cover to
persons enrolled in PMJJBY and 26.23 crore persons in
the mass at a cheaper rate.
PMSBY, with claim servicing ratio of 93.7% & 77.3%
respectively. Apart from the PMJJBY & PMSBY, all the PMJDY
Subsequently, the insurance penetration has started
account holders with debit card, are covered with inbuilt
increasing again from FY15 and is at 4.20% in FY21.
accident insurance cover of Rs 2 lakh. Further, it is interesting
to note that the number of people covered through life
About the author insurance by insurance companies during May '2015 to July
2021 stands at around 17 crores, while Government
Dr. Tapas Kumar Parida sponsored PMJJY scheme has enrolled around 12 crore
Senior Economist people during the same period.
Economic Research Dept.,
State Bank of India, Mumbai
During 2020-21, the insurance industry has covered a total
The Insurance Times, February 2022 35