Mr. Vijayan, Chairman of Insurance Regulatory and Development Authority, today positively quoted that Insurance business (both general and life) in India is expected to touch a mark of Rs. 4 lakh crores by the year ending March 2014 as compared to Rs. 3.75 lakh crores for the corresponding period previous year.
At the time of addressing the convocation ceremony of the institute of Insurance and Risk Management, Mr. Vijayan said that that both general and life insurance business is doing well in recent months and that insurance penetration is expected to increase to 5 – 6% as against the current level of 3.86%. For this IRDA has taken various steps like improving distribution channel of insurance products by allowing banks to act as broker and sell insurance products of multiple insurance companies.
IRDA has also amended the insurance products by making it more users friendly. IRDA has tried to make the product a pull product from a push product. A pull product is one which a customer has a desire to buy as it will fulfill his purpose whereas a push product is one wherein a customer has no desire to buy the same.
IRDA chairman also said that around 90% of the total of 370 products has complied with the new guidelines issued and that IRDA has given 3 months time as a transition period for insurance companies to withdraw all old products.
