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&
S.RAJARAM
PH.D FULL TIME RESEARCH SCHOLAR
PERIYAR E.V.R COLLEGE
TIRUCHIRAPPALLI-620023
ABSTRACT
Insurance is one of the emerging and growing sectors in India. The micro-insurance portfolio
has made steady progress. More life insurers have commenced their micro-insurance
operations and many new products are being introduced every year. Micro-insurance business
was procured largely under the group portfolio. Life Insurance Corporation of India
contributed the most both in terms of policies sold and number of micro-insurance agents.
Insurance companies are now offering already approved products as micro-insurance
products with the approval of the authority, if the sum assured for the product is within the
range prescribed for micro-insurance. With this aspect the present paper made an attempt to
discuss about micro insurance portfolio of individual as well as group by public and private
sectors insurance companies.
KEYWORDS: Micro insurance Portfolio, New Business micro insurance, Public sector
insurance and private sectors insurance company.
Introduction
Indian insurance sectors are one of the well organized and regulated sectors which
help to assists the overall capital flow of the financial system. Micro insurance is popularly
sold as an individual policy; Group Endowment is currently being issued by some Insurers
for economically weaker sections. Under this category, there is life protection, both on
survival and death. Pension can also be built into the product. Some Insurers offer accident
benefit and permanent disability benefit during the premium paying term only, or for the full
term. The sum is capped between Rs 30,000 and Rs 50,000. A majority of the insurers offer
policies under the non-medical scheme and automatic acceptance if size of the group is more
than 200 members. It is possible to offer an automatic cover facility after two years of
premium payment. A policy bond is given and administration is done through a microinsurance agent. Some Insurers may exclude the risk coverage for the first 45 days. Hence,
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there is a need to understand the micro insurance portfolio of public and private sectors
insurance companies in India.
Review of Literature
Basanta k. Sahu (2010) has highlighted that the timing of this study is strategic when
there is a renewed policy interest in micro insurance sector in India to achieve variety of
Socio-economic goals. Some important liberal regulatory policy initiatives have been
introduced recently to improve outreach and growth of the sector. Insurers are now permitted
to deal in both life and non-life products. Micro insurance industry in India poised for-faster
growth. But at the micro level, situations. Specific to different groups and regions looks
different with different perspectives of stakeholders.
Devandasan.N and Somil Nagpal (2007) has concluded that many micro health
insurance schemes have not only achieved good enrolment levels amongst their target
population, indicating the existence of demand but from a policy markers perspective, these
schemes have also improved access to health services for the poor. In scenario where illhealth has been major cause for improvement, the value of such financial protection does not
need to be reemphasized.
Shenbagam and Kannappan (2015) has reveals that micro insurance can also be
instrument to spread communal security in the environment of providing safety to people in
developing countries and paying to shortage improvement. The people are well aware
towards the micro insurance products among the urban and rural people. Agents played a
main in creating alterness as well as the major influence for attractive micro insurance policy.
Virginia Tan and Allen et.al., (2012) has concluded that micro insurance has the
potential to make a massive difference in peoples lives helping to keep them above the
poverty line and by cushioning them against disaster, allowing them to focus on a better
future. Micro insurance has started to become a practicable option for low income households
to protect against adverse events and as a tool for governments to pursue economic and
industrial development.
Sanjeev kumar srivastaw (2013) has concluded that poverty alleviation is still a
major problem of India. Micro insurance is one of the tools that seek to achieve that
objective micro insurance tries to extend social protection to poor people as well as providing
financial services to them, however, the diverse nature of India rural economy, suitable
mechanism must be developed to minimize the transaction cost and improvement in
insurance density.
Paramasivan.C and Rajaram.S (2015) has concluded that Insurance is one of the
complexes and time consist financial services with unique nature of features. Period of the
insurance policies varies from one year to unlimited time particularly in micro insurance.
Death claim is one of the major parts of the insurance products. In a normal death claim, that
is if the life assured has died after two years of the commencement of risk, the insurer, on
being intimated about the death of the policyholder, calls for the age proof, if not earlier
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admitted, the original policy document and proof of death. The proof of death can be a
certificate from the municipal authorities under which cremation has taken place or other
local body like death registry.
Paramasivan.C and Rajaram.S (2015) has concluded that micro insurance is part of
financial inclusion which provides financial services to the poor and the unreached people in
the country. Micro insurance consists of wide scope and it will reach huge segment of the
people. In India, micro insurances are not much popular like the life and general insurance
because of the lack of awareness among the people. Hence, there should be a awareness on
micro insurance among the people particularly those who belong to weaker section of the
society.
Private Insurance Companies Micro insurance Products (List of Policies)
1
2
3
4
5
6
7
8
9
10
11
12
Grameen Bima
Tata AIG life Ayushman Yojana
Tata AIG life Navakalyan Yojana
Tata AIG life sampoom Bima yojana
Tata AIG Sumangal Bima Yojana
S.No
1
2
Jeevan Madhur
Jeevan Mangal
Jeevan Deep
has decided to revisit the regulations. The Micro Insurance Regulations prescribe a
framework within which insurers can offer affordable products in this regard. It has asked
insurers to consider diversifying the portfolio of micro insurance products by including
savings-linked and health cover features.
Table No:1
New Business under Micro Insurance Portfolio Individual wise from 2009-2014
Public Sector Insurance Company
Year
2009-10
2010-11
2011-12
2012-13
2013-14
Total
No.of
Polices
1985145
2951235
3826783
4340235
2205820
15309218
Premium
Rs. (Lakhs)
14982.51
12305.8
10603.49
9949.05
8635.77
56476.62
Table No. 1 Shows that the micro insurance portfolio individual wise public sector insurance
company 2009-2014.
Maximum of the year 2009-10, Rs.14982.51 Lakhs mobilished as premium from
1985145 policies. The followed by Rs.12305.8 Lakhs mobilished as premium from 2951235
policies.2010-11. As regards 2011-2012, Rs.10603.49 Lakhs mobilished as premium from
3826783 policies. The followed by 2012-2013 Rs.9949.05 Lakhs mobilished premium from
4340235 policies. The minimum of the year 2013-2014 Rs.8635.77 Lakhs mobilished as
premium from 2205820 policies.
As on the whole, Rs 56476.62 Lakhs were mobilished as premium from 15309218
policies under the categories of individual by public sector insurance company during the
year 2009-10 to 2013-2014.
Table No:2
New Business under Micro Insurance Portfolio group wise from 2009-2014
Public Sector Insurance Company
Year
2009-10
2010-11
2011-12
2012-13
2013-14
Total
No. of
Schemes
5190
5446
5461
5325
5292
26714
Table No:2 Show that the micro insurance portfolio group categories public sector insurance
company 2009-2014.
In the year 2009-10, 5190 Schemes were implemented which mobilized a premium of
Rs.22869.72 lakhs and lives covered to 14946927. The followed by 2010-2011, 5446
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schemes were implemented which mobilized a premium of Rs.13803.67 lakhs and lives
covered to 13275464, as regard 2011-12, 5461 schemes were implemented which mobilized a
premium of Rs.9444349 lakhs and lives covered to 9831.63,as regard 2012-13, 5325 schemes
were implemented which mobilized a premium 13223872, followed by 2013-14, 5292
schemes were implemented which mobilized a premium 12581.45 lakhs and lives covered
11887303.
As on the whole 26714 implemented schemes were implemented were of which,
mobilized a premium of Rs.275937.04 lakhs and lives covered to 40140571.39.
Table:3
New Business under Micro Insurance Portfolio Individual wise from 2009-2014
Private Sector Insurance Company
Year
2009-10
2010-11
2011-12
2012-13
2013-14
Total
No.of
Polices
998809
699733
793660
695904
561339
3749445
Premium
Rs.(Lakhs)
839.78
735.09
964.22
1018.54
929.29
4486.92
Table No.3 Shows that the micro insurance portfolio individual wise public sector insurance
company 2009-2014.
In the year 2009-10, Rs.839.78 Lakhs mobilished as premium from 998809 policies.
The minimum of the year 2010-2011 Rs.735.09 Lakhs mobilished as premium from 699733
policies. As regards 2011-2012, Rs.964.22 Lakhs mobilished as premium from 793660
policies. The maximum of the year 2012-2013 Rs.1018.54 Lakhs mobilished premium from
695904 policies. The followed by 2013-2014 Rs.929.29 Lakhs mobilished as premium from
561339 policies.
As on whole, Rs 3749445 Lakhs were mobilished as premium from 4486.92 policies
under the categories of individual wise by public sector insurance company during the year
2009-10 to 2013-2014.
Table:4
New Business under Micro Insurance Portfolio group wise from 2009-2014
Private Sector Insurance Company
Year
No.of
Premium No. of
Schemes Rs.(lakhs) Lives covered
1472.09
1895143
2009-10 17
1719.14
1983537
2010-11 23
112
750555
1150.67
2011-12
757450
756.89
2012-13 151
164
1595.23
1291741
2013-14
Total
467
1512791.46 5172328.56
Source: irda annual report
Table No:4 Show that the micro insurance portfolio group categories public sector insurance
company 2009-2014.
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