One out of every four people do not think that life insurance is important, reveals an IRDA sponsored study.
Salient Points of Study
1. The study also suggested that private sector and the government should work together in Public-Private Partnership (PPP) mode to enhance awareness about the benefits of insurance specially in the age group of 20-30 years.
2. It has said that people, specially in rural areas, are not able to clearly comprehend the extent of coverage being offered under particular insurance plan which results in low penetration.
3. It is essential that awareness creation interventions be undertaken targeting the 20-30 year age group.
4. It also suggested different insurance packages for rural poor and urban populace and also highlighted the importance of micro insurance.
5. The study said that the insurance companies or the regulatory authority need to step up efforts to improve the awareness levels across the country.
The above study was conducted by Delhi-based think-tank NCAER at the behest of insurance regulator IRDA.