Facts:
- National Sample Survey (NSS) data shows that over 80% of India’s population is not covered under any health insurance scheme.
- The data reveals that despite seven years of the Centre-run Rashtriya Swasthya Bima Yojana (RSBY), only 12% of the urban and 13% of the rural population had access to insurance cover.
- 72% of the treatment provided in rural areas and 79% in urban areas was availed in the private sector.
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Need to set up an Insurance Index in India for insurance penetration to act as a measure of financial and social progress.
Will give more clear picture of Financial Inclusion.
India’s Insurance penetration is 3.9% compared to world average of 6.3% largely due to limited financial awareness and literacy among masses.
Insurance Density = Premium/Total population (India far below world average)
Insurance Penetration = Premium/GDP
Gender based view also need to be included e.g. number of female policy holders vis-a-vis males.
Distribution is the key to enhance insurance penetration. In India distributers play a pivotal role in educating and advising clients.
Postal network should be actively utilized.