Research Journal of Economics & Business Studies - RJEBS - The ...

The Self-Help Group members get income by way of interest every year. A part of this amount
can be utilized by the members for buying insurance products because they are prone to various risks.
The following Table shows information on the growth rate and market share of microinsurance
agents appointed by the life insurers during 2006-07 to 2009-10. With the notification of
IRDA (Micro-insurance) Regulations, 2005 by the Regulator, there has been a steady growth in the
design of products catering to the needs of the poor and under-privileged. As the concept of micro
insurance agent is new as per the IRDA’s Regulations in 2005, only the information for four years is
considered. The number of micro insurance agents as on 31 st March, 2010 was 8,676, of which 7,906
were for the LIC and 770 for the private sector companies. The number of micro insurance agents is
increased by 6.62 times in the insurance industry, i.e. 6.42 times in LIC and 9.75 times in the private
sector. It shows a significant increase in the number of micro insurance agents in the industry. LIC
contributed to a greater extent to this increase. But, the response with regard to the sale of micro
insurance products by the private sector is not up to the mark. It is marginal and meant only for
fulfilling the regulatory obligations.
GROWTH RATE AND MARKET SHARE OF MICRO-INSURANCE AGENTS OF LIFE
INSURERS DURING 2007-08 TO 2009-10
(in Percentage)
Year LIC Private Sector Total
Amount % Amount % Amount %
2006-07 1,232 93.97 79 6.03 1311 100.00
2007-08 4,166 90.88 418 9.12 4,584 100.00
(238.15)
(429.11)
(249.65)
2008-09 6,647 91.68 603 8.32 7,250 100.00
(59.55)
(44.26)
2009-10 7,906 91.12 770
(18.94)
(27.69)
Note: Figures in brackets are annual growth rate percentage
% indicates market share of the insurers
Source: Compiled from the Annual Reports of IRDA
(58.16)
8.88 8,676
(19.67)
100.00
Conclusion: In most of the villages send their children to the school as mid-meal is provided to
those who are enrolled in the school. The agricultural laborers are every-day earners. Therefore, the
rural people are will to pay insurance premium on a monthly basis.
Particularly, health insurance schemes are to be made known and introduced in rural areas.
Unnatural death also provides an opportunity for insurance penetration, health insurance, in rural India.
The insurance companies have to be providing various insurance schemes for the coverage of land,
cattle and sheep, which will provide a safety for rural insurers. As a matter of fact risk point of view
rural people having much more risk than urban. The main reason is that medical facilities are very low
than city living people. Hence, the insurance companies will be providing various schemes under the
coverage of various risks with very low premium. And premium can be collected according to the
convenience of agricultural laborers. To create awareness programmes among the rural population
efforts are to be taken by the insurance corporation.
It is therefore, the insurance companies arrangements will be made for selling their products in
the rural areas both in life and non-life sectors. Finally, the insurance companies are having enough
opportunities for insurance penetration in rural areas.
www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 06, April-2013 Page 14