95pc of the Indian population remains uninsured: National Insurance Academy

The National Insurance Academy's latest report, based on data released on Thursday, has uncovered a grim reality: a staggering 95 per cent of India's 144 crore population remains uninsured. Despite concerted efforts by the government and insurance regulatory authorities, the report brings out the urgent need for comprehensive reforms to bridge this massive insurance gap.

Irdai Chairman Debasish Panda, unveiling the report, urged the insurance industry to draw inspiration from the successes of initiatives like UPI, the widespread opening of bank accounts, and increased mobile penetration. Panda emphasised the necessity of a compulsory natural calamity insurance scheme for high-risk regions, a recommendation highlighted in the report.

Such measures, he believes, are crucial for achieving the ambitious goal of ensuring insurance coverage for all citizens by the time India celebrates its centenary as a republic.

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The report pointed out that 84 per cent of people in low- and middle-income categories, along with 77 per cent residing in coastal regions, tier-2, and tier-3 cities, lack property insurance. With a rising number of natural calamities and climate-related disasters impacting the nation, the need for increased coverage becomes even more pressing.

Furthermore, the report advocates for mandatory crop insurance for farmers who have availed bank loans, with support from microfinance institutions and agri-input suppliers. Presently, the annuity and pension protection gap stands at a high of 93 per cent, presenting a significant area for improvement. There is also an 87 per cent protection gap in life insurance.

Health insurance remains a concern, with 73 per cent of the population lacking coverage. The report calls for collaborative efforts between the government, NGOs, and industry groups to establish micro health insurance schemes with simplified products.

Additionally, pension and annuity coverage fall short, with only 24 per cent enrolled in employee retirement schemes. Notably, low-income and lower-middle-income segments exhibit meagre penetration, standing at 14 per cent and 25 per cent, respectively.

As the digital landscape evolves, the report highlights a rapidly expanding cyber protection gap across sectors. Increased exposure, higher digital usage, and growing connectivity contribute to a 62 per cent customer demand for cyber risk protection. Urgent measures are required to address this emerging challenge.

Established in 1980 in Pune, the National Insurance Academy has become a leading centre for executive training, research, and study on insurance, pensions, and related disciplines.

(With inputs from PTI)

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