More Than 50 Per Cent Of Vehicles Remains Uninsured, Says IRDAI Chief
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Insurance regulatory and development authority of India chairman Debasish Panda, on Monday, said that more than 50 per cent of vehicles in the country are uninsured which indicates the unavailability of adequate insurance covers. While speaking at the 18th insurance summit, in Mumbai, Panda also asked the insurance students to come up with the innovative and tech-enabled ways in which India can cover up the 83 per cent protection gap.
“The industry has been growing at 11 per cent for the last 5 years but to insure every person in India, a highlighted importance of insurance as financial and social protection has to be worked upon. Only then can this industry contribute its part to economic and nation building,” said Panda in a statement.
He also added that growth momentum is expected to remain constant which is a golden opportunity for the insurance sector which can go from 10th largest to 6th largest.
Panda mentioned that IRDAI is also working with a one-stop shop for insurance, Bima Sugam, which is a new online platform approved by the regulator where different types of insurance products will be sold. The platform will make it possible for customers to port their policies from one provider to another.
Commenting on the insurance trend and adoption among Indians, LIC chairman MR Kumar in a news report was quoted as saying, “Even today, only 3 in every 100 people in the country have a life insurance policy. Even though the penetration increased during the Covid pandemic, it is still very low and needs to be worked upon by industry leaders. In 2021, India also witnessed the highest growth in high net-worth individuals. This led to a huge increase in the customer’s appetite for better and more customized insurance product and thus, the insurers are looking forward to meeting these needs.”