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Lesser GST On Insurance May Enhance Penetration
BUSINESS ECONOMICS
|July 16-31, 2019
Tajinder Mukherjee, Chairperson and Managing Director, National Insurance Company Ltd., spoke to BE’s Shinjini Mukherjee regarding the poor insurance penetration rate in India and a way out of this.
Q. Why are penetration and density of insurance so low in India in spite of its decent level of economic growth for decades?
A. Admittedly, these indicators have been comparatively low in India historically. But I trust that this will serve as an opportunity for us instead of being a hurdle. It has been predicted that the insurance industry is going to reach $280 billion by 2020 driven by increasing awareness, novel products and innovative distribution channels. Health insurance is going to play a major role in this expected growth - especially with the government supported plans like Ayushman Bharat. It is the same for crop insurance. More and more players are coming into the sector. Ever increasing income levels of the middle class in the country, increasing life expectancy and many more parameters are going to drive the insurance industry to higher echelons.
Q. How do you plan to reach out to more sections and enhance awareness of your products?
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