More than 80% Indians don’t have Life Insurance!
This is a terrible statistics, isn't it? Well, the funny thing is that many of us are too much obsessed with shining Indian economy and forget the reality of India. I saw a report in the Financial Express with the title, 'India's insurance biz at $60 bn by 2010'. The size of insurance sector in India right now is just $10 billion now. So, in four years, we will see 6 folds growth. I am quoting from the report:
"The Associated Chambers of Commerce and Industry (ASSOCHAM) said rural and semi-urban India could contribute $35 billion by way of insurance premium by 2010.
Of this, $20 billion is expected from life insurance and the remainder through insurance of vehicles, property, livestock, crop and farm equipment, it said."
Nice, but still most people will remain outside of insurance. Indian economy is growing but not too many jobs are created here. So, the size of Indian insurance may become 6 times bigger in the next 4 years but the number of people will not increase significantly. I did some search in Internet and found, "Out of one billion people in India, only 35 million people are covered by insurance." I am not so good at math and so you can do your own math from this figure. I am not expert on insurance either but I know that having insurance is a basic requirement of life- just like having a home.
This is the sad part of third world countries. Most people do not have insurance and thus, they have no social security either. This problem is even more acute in many other countries of the world.
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