India needs to elevate the penetration and density of insurance
BUSINESS ECONOMICS|August 1 - 31, 2023
The insurance sector holds significant importance in a modern economy and its development is assessed through two key indicators: insurance penetration and insurance density. Insurance penetration is the percentage of total insurance paid in a year relative to the GDP of that year, while insurance density refers to the ratio of premium to population, usually measured in US dollars for international comparisons. Unfortunately, India has been lagging behind the global average in both these aspects.
Kishore Kumar Biswas
India needs to elevate the penetration and density of insurance

Distinguishing between life and non-life insurance, there are two types of insurance: life insurance and general (non-life) insurance. Life insurance policies provide coverage against the risk of life, while general insurance covers all other risks except for life-related risks. Five key differences set the two apart: Firstly, life insurance is a contract that covers the life risk of insured persons, whereas general insurance covers many other areas not covered by life insurance. Secondly, life insurance is a term contract, whereas general insurance operates on a short-term basis. Thirdly, life insurance requires premium payments throughout the term, whereas general insurance involves a lump sum premium. Fourthly, the insurable amount is paid either upon the occurrence of the event or on maturity for life insurance, whereas for general insurance, the liability will be paid upon the occurrence of uncertain events. Lastly, for life insurance, the insurable interest must be present at the time of the contract, whereas for general insurance, it must be present at the time of the contract and at the time of the loss.

Denne historien er fra August 1 - 31, 2023-utgaven av BUSINESS ECONOMICS.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August 1 - 31, 2023-utgaven av BUSINESS ECONOMICS.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA BUSINESS ECONOMICSSe alt
Elections 2024: Illusion & Reality
BUSINESS ECONOMICS

Elections 2024: Illusion & Reality

Whenever there is an election, we find the politicians speaking in hyperboles – and possibly, 2024 Lok Sabha has reached a crest.

time-read
3 mins  |
June 01 - 30, 2024
Government initiatives aim to bolster rubber cultivation and innovation
BUSINESS ECONOMICS

Government initiatives aim to bolster rubber cultivation and innovation

Rubber tree plantation has seen significant growth in India, thanks to robust government oversight and favorable weather conditions.

time-read
3 mins  |
June 01 - 30, 2024
Macron speaks on Europe's economic fragility
BUSINESS ECONOMICS

Macron speaks on Europe's economic fragility

Many heads of state often speak on topics over which they have little control or vested interest.

time-read
2 mins  |
June 01 - 30, 2024
Indian industries stand to benefit in raising of tariff on Chinese imports to the US
BUSINESS ECONOMICS

Indian industries stand to benefit in raising of tariff on Chinese imports to the US

A delicate balance of power and influence exists between the United States of America and China.

time-read
1 min  |
June 01 - 30, 2024
Chabahar Port Agreement: Part of India's strategic and economic vision for Central Asia and Europe
BUSINESS ECONOMICS

Chabahar Port Agreement: Part of India's strategic and economic vision for Central Asia and Europe

On May 13, India and Iran signed a 10-year contract to operate the Chabahar port in Iran.

time-read
2 mins  |
June 01 - 30, 2024
It is quite incredible to see things of interest happen with the blessings of the divine trio
BUSINESS ECONOMICS

It is quite incredible to see things of interest happen with the blessings of the divine trio

Swamiji once said, “The wind of divine grace is always blowing. You just need to spread your sail.

time-read
4 mins  |
June 01 - 30, 2024
The battle for sustainability: Earth Day's message of 'Planet vs. Plastics
BUSINESS ECONOMICS

The battle for sustainability: Earth Day's message of 'Planet vs. Plastics

World Earth Day, observed annually on April 22 worldwide, commemorates contemporary environmental advancements and promotes awareness of the imperative to conserve Earth and its resources.

time-read
4 mins  |
June 01 - 30, 2024
Mother Teresa International Award 2024: Celebrating Humanity and Service
BUSINESS ECONOMICS

Mother Teresa International Award 2024: Celebrating Humanity and Service

The Mother Teresa International Award, a prestigious honor recognizing individuals dedicated to serving humanity, will host its 2024 ceremony in Dubai, United Arab Emirates.

time-read
2 mins  |
June 01 - 30, 2024
Can India get out of the middle income trap?
BUSINESS ECONOMICS

Can India get out of the middle income trap?

In the mid-1980s, international financial institutions moved away from calling their member countries as poor and rich countries, or as developed and less developed countries.

time-read
4 mins  |
June 01 - 30, 2024
How is India's falling household savings rate worrisome for its development?
BUSINESS ECONOMICS

How is India's falling household savings rate worrisome for its development?

There has been a sharp reduction in the household net financial savings rate in 2022-23, leading to an overall decline in the financial savings rate.

time-read
2 mins  |
June 01 - 30, 2024