Press Information Bureau

Government of India

Ministry of Finance

30-November-2012 15:15 IST

The Insurance Regulatory and Development Authority (IRDA) has informed that penetration of insurance (including life and non life) for India for the years 2010 and 2011 was 5.10 and 4.10 respectively. Life insurance penetration in India was higher than the world’s average in 2010 and the combined average is higher than Brazil and Russia and most of other countries of Asia including Bangladesh, Pakistan, China and Sri Lanka.

The Government periodically receives proposals for providing tax incentives, inter alia, for investments in insurance and mutual funds and examination of such proposals is a part of an on-going process.

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.

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DSM/RS/ka

Insurance penetration reported as comparatively high; government continues examining tax incentive proposals for insurance and mutual fund investments. Insurance penetration metrics reported by the insurance regulator show life and combined insurance market reach with life insurance penetration exceeding the global average and combined penetration surpassing certain peer economies; the Government also confirms it periodically receives and reviews proposals to provide tax incentives for investments in insurance and mutual funds and that examination of such proposals is ongoing.