The scope of insurance is very vast in India. Only
30% population of India are covered with insurance policy. So the market is
quite wide for insurance sector as the population of India is more than 1
billion. It is very necessary to make the people educated about the benefits
and uses of insurance so that they know how much it is necessary to take
insurance policy. We have seen that in western countries, people were very much
aware of insurance and mainly the whole family is covered with insurance
policy. In India, people think that
insurance is for rich people who have extra money for investment. In General
word, it is used as an investment purpose.
But the main advantage of insurance is that its cover risk. Insurance is
a safeguard or protection if any unexpected event occurs. Insurance policy
helps to recover the financial loss from that unexpected even.
Insurance Regulatory and Development Authority
(IRDA) have taken many steps to increase the business of insurance in India. By
regulating IRDA ACT, 1999, the insurance sector is opened for private
companies. IRDA also look to protect the interest of insurance holder. Many big
companies are working in the field of insurance. Life Insurance of India, SBI
Life Insurance, Baja Allianz, ICICI Prudential, Metlife Insurance, etc are the
key companies in India.
The companies appoint agents who make the people
aware about the benefit of insurance and encourage them to take policy in their
name and also in their family name. An agent gets good commission after selling
the policy. Different types of offers
and policies are available to attract all class of people. As the people are
aware of insurance, the business of this sector is increasing day by day. In a
very short time of span, India becomes the world’s fifth largest market in
Insurance. The yearly growth of insurance sector is 34% in India. It provides
employment to many people also.
Types of Insurance in India
Generally there are two common types of Insurance in India
1. Life Insurance - It includes Term Life Insurance, Permanent Life Insurance,
Endowment Policies, Money Back Plans, Annuity / Pension Policies / Funds, etc
2. General Insurance - It includes Personal Insurance, Property Insurance,
Accidental Insurance, vehicles Insurance, etc
