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Performance evaluation of Rural Insurance in India
Dr. P. Raja Babu, Associate Professor, KLU Business School,
KL University, Vaddeswaram, Guntur District, Andhra Pradesh, India
Abstract: Rural insurance has to play important role for the sake of weaker section of the
society as well as encouragement of saving in rural households as a result for the development of the
economy. In this article the author has to highlighting rural business and potentiality for expansion of
insurance companies in rural areas have to be highlighted.
Introduction: Insurance is the protection of the economic value of assets. In case of destroyed
asset through an accident or other unfortunate event the owner of the asset will get the benefit through
insurance. And it will be helpful sudden death of insurer in that position income would normally cease.
With the help of insurance those people who are dependent on the income through the insurance to
meet their needs. The scope of bringing more individuals into the life insurance net is undeniable,
provided the right type of products and services are made available. The level insurance penetration
being positively correlated to the level of economic development must take place, but it should be
wide spreads for any dramatic increase to take place in the insurance penetration.
In India more than seventy percent of the population lives in rural areas. The impact of risks
associated with life is far severe on rural population as compared to the urban population because of
with their higher levels of income. In the decade of 2000 some of private companies were started
different rural schemes to the rural populace of India. With changing times and with increasing
variable incomes in rural areas, the public and private sector companies improving their solutions to
the rural population and launching different insurance products which are terms and return of premium
products. The policyholder has to pay premium amount with flexibility days between 30 to 180 days.
The rural insurance has to refer the protection provided to the rural class is specified and customized
according to their needs. Through a multiple channel system we not only provide agricultural
protection but also health, motor and other covers. Various products offered in rural insurance are:
Health Insurance: It has to provide protection to the health of the rural folk through our
comprehensive Family Health Insurance plan, which covers the entire family in one policy.
Home Insurance: This policy protects much more than just the home. Through the network channels,
ensure that the houses in the rural sector are insured against natural and other perils.
Tractor Insurance: Tractors are one of the most precious assets to the rural folk. The package of this
policy has to covers not just own damage but also third party liability and personal accident.
Weather Insurance: Weather Insurance is an insurance cover against losses incurred due to
uncertainties in climatic conditions. It can be used to hedge any vulnerability of assets or any other
damage incurred due to erratic and irregular weather.
Shop Insurance: Shop Insurance is a comprehensive policy that covers both the structure and the
contents of a shop and protects it against any financial loss in case of an unfortunate incident.
Rural insurance: Need and potential’ has highlighted that the Government should pay serious
attention to the rural areas. In fact, Life Insurance Corporation of India (LIC) stipulates that a
considerable percentage of its business should be from rural areas. And it has some social security
schemes covering the rural and urban poor, landless labor, and so on. Yet it was not possible for it to
penetrate into the interiors to tap the rural business. Two main reasons were the cost involved in
www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 06, April-2013 Page 11