Insurers Surpass Targets for Rural Areas in 2010-11

Press Information Bureau

Government of India

Ministry of Finance

23-August-2012 17:02 IST

The Insurance Regulatory and Development Authority (IRDA) has reported that it has mandated regulations for both life and non-life insurers and fixed targets for insurers business in “Rural Areas”. There is no such mandated regulation for Semi-Urban Areas. The authority takes regulatory action for non-compliance of the Insurance Regulatory and Development Authority (Obligations of Insurers to Rural or Social Sectors) Regulations, 2002 and amended from time to time, by the State-owned insurers in the rural sector. As per the regulations, the target for exclusive business in rural area fixed for State-owned life and non-life insurers is 25% of the total number of policies and 7% of gross premium income written direct in that year, respectively.

The performance of the State-owned life insurer in the rural area was 32.74% against target of 25% of the total number of policies whereas for non-life insurers, it was 10.15 % against target of 7% of gross direct premium income for the financial year 2010-11.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.

* * *

DSM/RS/bs