Life Insurance Industry In India

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LIFE INSURANCE MARKET: THE RURAL INDIA ATTACHMENT R. Praveen Kumar, S. Poorna Prabhat, Research Scholars, Department of Commerce & Business Administration, ACHARYA NAGARJUNA UNIVERSITY ABSTRACT Life insurance is bought lesser in India by rural population. In the case of life insurance, there is very little pressure. The possibility of death is unseen by the rural people; however there is more likelihood of such adversity for people lives in rural areas. The rural people never believe that they can give away to destiny and they think they will live a long and healthy life. The rural population in India is without life insurance cover and this part of the population is also subject to weak social security and pension systems with hardly…show more content…
They hesitate in giving their hard earned money to the insurance companies as premium. Despite the schemes being launched for the social upliftment of the society, but the premium is at the beneficiary end for that concerned group. There are following main challenges in selling life insurance policies in rural areas. Awareness and Education The biggest challenge in insurance company is to change its perception as a risk easing instrument. This can be done by spreading awareness about how insurance works in principle. According to a report by FICCI-ING Rural Insurance promoted foundation of research, training and education, high level of awareness about insurance is must. Insurance is largely seen as a risk cover instrument and not much as investment option. Reasons for taking life insurance policies are also common like daughter's marriage, children's education, etc. Documentation and Certification Some of the basic documents provided to the insurance companies by the rural people are age proof, FIR, death certificate, etc. still norms and documentation process should be comparatively simple for the rural areas. Crop insurance, insurance against animal's life etc. needs special attention and simpler yet effective…show more content…
REFERENCES  Assocham (2007), "India's Insurance Likely to jump by 500% in 2010', available at  FORTE - A Collaboration between FICCI and ING Insurance  Government of India, Ministry of Finance (1994), Report of the committee on reforms in the insurance sector (Malhotra Report).  IRDA annual Reports presented at  "LIC Targets 40 Lakhs Rural Micro-Insurance Policy", The Hindu Business Line June 10, 2008.  LIC Annual Reports presented at  Rajan Das (2007) presented at

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