Press Information Bureau

Government of India

Ministry of Finance

23-November-2012 16:34 IST

The Insurance Regulatory & Development Authority (IRDA) has informed that out of the total 4,41,91,864 Life Insurance policies issued in the year 2011-12, 1,39,83,265 constituting 31.64% of the total number of policies, were issued in the rural areas. In addition to this,1,45,31,183 lives were covered by all Life Insurance Companies from social sector groups including unorganised sector, economically vulnerable or backward classes and informal sector groups during the year 2011-12.

Further Government of India has launched following social security insurance schemes especially for rural and urban economically backward people:

i. Aam Aadmi Bima Yojana (AABY)

II. Janashree Bima Yojana (JBY)

iii. Rashtrya Swastha Bima Yojana (RSBY)

iv. Mahatma Gandhi Bunkar Yojana (MGBY)

IRDA has issued IRDA (Obligations of Insurers to Rural and Social Sectors) Regulations 2002 wherein every life insurance company shall fulfill the norms towards its obligations (Percentage of Policies on the total number of policies written direct in that year) in the rural and social sector.

As per IRDA, 26.84% of the total policies issued by private insurance companies during the year 2011-12 were issued in rural areas.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in a written reply to a question in the Lok Sabha today.

*****
DSM/RS/ka

Insurer obligations to rural and social sectors require targeted policy distribution, prompting social security schemes and regulatory compliance. IRDA (Obligations of Insurers to Rural and Social Sectors) Regulations, 2002 require every life insurance company to meet specified norms for the percentage of direct-written policies allocated to rural areas and social sector groups; in 2011-12 a substantive share of policies and lives covered arose from rural and social sectors, and the Government has promoted targeted schemes such as Aam Aadmi Bima Yojana, Janashree Bima Yojana and Rashtriya Swastha Bima Yojana to extend coverage to vulnerable and informal sector populations.