Insurance premium may touch Rs 1 lakh cr by 2015

Industry body Assocham on Thursday said it estimates the premium from general insurance to touch Rs 1 lakh crore in the next 5 years as awareness and income about insurance products among the rural masses are on the rise.

Currently, insurance premium collection is estimated at Rs 350 billion (Rs 35,000 crore), the chamber said. In rural areas, awakening levels (regarding insurance) are rising and their income is surfacing because of the various social schemes of the government, it said. "...because of the social schemes of the government a large chunk of the rural population is getting inclined for insurance...It is one of the reason which will drive growth for insurance premium and reach projected levels of Rs 1 lakh crore by 2015," it added.

 As over 60 per cent of the population, largely in rural areas has yet to be tapped by insurance industry, micro- financing institutions should explore possibilities in rural areas for wider coverage of general insurance, it said.

The government's initiatives on mass insurance would also gradually open the reach of general insurance to a large part of the country. High growth in automobile sector, huge strides in the healthcare will also open up health insurance potentials substantially, it said.