• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

HYDERABAD, Nov. 27

THE Insurance Regulatory and Development Authority (IRDA) expects the private sector life insurance players in the country to grab a sizeable market share of around four per cent by the current fiscal end.

According to the IRDA Chairman, Mr N. Rangachary, it would be a significant achievement by the private sector, which registered a market share of one per cent during the last fiscal, especially in view of the expanding insurance market in the country.

Addressing the inaugural session of the two-day insurance summit, organised by the Confederation of Indian Industry (CII) here on Wednesday, the IRDA Chairman said the private sector life insurance companies were expected to attain a market share of over five per cent in the next couple of years. The private sector non-life business was expected to grow more than the life segment, he said.

Observing that almost all the necessary regulations were issued by the regulator for creating a vibrant insurance market in the country and that there were no pending requests from the insurance players, Mr Rangachary, however, expressed his dissatisfaction over the Life Insurance Corporation (LIC), which tends to pick up volumes mostly at the end of the fiscal year.

According to Mr Rangachary, this tendency of the LIC agents gives an unhealthy impression to the consumers at large that the life insurance cover was meant more for tax benefits than safety. He advised the LIC top brass to address the issue at the earliest.

Accusing the insurers of confining largely to mere marketing of their products, he said they had not attempted at increasing the awareness among the consumers on the need to buy insurance products. With the insurance companies finding the expenses of educating the consumers a burden, the insurance regulator approached the Government to allow it take up the responsibility, he said.

Observing that some of the insurance players were resorting to unethical practices such as under-pricing of products, he advised the industry to take adequate care and look into their solvency positions before finalising the process of pricing the products.

While noting that the entry of private sector players into the Indian insurance arena benefited the consumers with choice, Mr Rangachary, however, said the regulator observed a tinge of unhappiness among the consumers over the lack of innovativeness in the products being offered to them and that the existing products were not meeting their requirements. He advised the insurers to address the unfulfilled desires of the consumers at the earliest.

According to the regulator, it was necessary to include insurance as part of the curriculum in the schools and colleges to create more awareness among the people on the need for insurance cover. The IRDA is currently in touch with Indian Institutes of Management (IIMs) and other professional institutions on the issue. The regulator is also considering the proposal of the Institute of Chartered Accountants of India (ICAI) to have insurance as a subject in the curriculum, he said.

Responding to the suggestion of the Andhra Pradesh Government on the need to introduce insurance cover to the rural farming community, Mr Rangachary invited the insurance players to come up with schemes for the farmers. The State Government expressed its willingness to contribute a portion of the premium towards such schemes, he said.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Syndicate Bank schemes for agri-credit

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line