Insufficient Insurance Cover: Pranab Mukherjee calls for public-private partnership

On Saturday, Finance Minister Pranab Mukherjee inaugurated Universal Sompo General Insurance Company’s new branch office and agents training institute at Raghunathganj.

Speaking on the occasion, Pranab Mukherjee said that, “In 1970s, the central government nationalized general insurance and life insurance companies, but we saw that the government was not being able to reach out to the masses. Following this, we allowed private companies to enter the insurance sector. Since then the private and public sector companies are doing business together. We have a very good presence in the life insurance sector. As opposed to this, the total number of people under general insurance is only 8-10%, which is very low as compared to 80% coverage in other nations. In order bring more people under its cover; there is a need to promote public-private partnership”.

Universal Sompo is a joint venture between Allahabad Bank, Indian Overseas Bank, Dabur Investment and Japan’s Sompo Insurance.

At the launch, N Singh, Chairman and Managing Director, Universal Sompo said that the training institute for agents will help create awareness about the benefits of insurance. In addition to providing employment to a number of people in the region, it will also aim towards greater penetration in the general insurance sector.

Automobile market contributes close to 50% of business by Universal Sompo and 12% from the health sector. Singh said that the company is planning to focus on the health sector to increase its business to 25%.

Calling for more awareness among the people for getting insured, Mukherjee said insurance agents should be trained to make the people aware about the benefits.