PTI, 18 February, 2012
NEW DELHI: Finance Minister Pranab Mukherjee on Saturday said the annual general insurance premium collection could double to Rs 1 lakh crore in the next three years on the back of rising insurance penetration and disposable income.
"Higher disposable incomes, rising aspiration of the people and growing awareness about need for insurance are some of the factors (that) would continue to drive the growth of the insurance sector in India in the coming decade," Mukherjee said at a function here.
"I am told that as per some estimates, the non-life insurance sector is said to reach Rs 1,00,000 crore by 2015 and Rs 2,50,000 crore by 2020," he said.
The non-life insurance sector representing close to 24 companies garnered about Rs 46,086.54 crore in 2010-11.
"The government has decided that all those district headquarters which have been left un-represented so far and all important towns up to Tier IV level as classified under the census will have an office both in life and non-life segment during this year."
Tier IV are cities with a population size of between and 10,000 19,999.
Highlighting the need for a concerted effort from the industry to create insurance literacy and awareness especially in semi-urban and rural areas, the Finance Minister said, new products may have to be designed to cater to specific groups such as women and workers in the unorganised sector.
Greater transparency and accountability in the conduct of the insurance companies especially in checking mis-selling of products and ensuring quick settlement of claims is absolutely necessary, he said.
He also said that there is a need to streamline the grievance redressal mechanism.
Industry needs to become customer friendly and devise products which are simpler and easy to understand, he said, adding, this will help in improving insurance penetration.