Context:
Insurance Amendment Bill proposing 100 per cent FDI unlikely in winter session
Insurance Sector in India:
- Insurance Penetration: Insurance penetration increased from 2.71% in 2001-02. As of 2022, insurance penetration stood at 4.2% of GDP, with 3.2% from life insurance and 1.0% from non-life insurance.
- Insurance density: Insurance density has increased from $11.5 in 2001-02 to $91 in 2021-22.
- Insurance business: India ranked 9th in life insurance business with a market share of 3.23% in 2021.
Steps taken for Development of Insurance sector:
- Formation of the Insurance Act of 1938 and nationalization of life insurance in 1956, leading to the creation of the Life Insurance Corporation (LIC).
- Establishment of the Insurance Regulatory and Development Authority of India (IRDAI)to regulate and promote the insurance sector.
- New Schemes –
- Bima Sugam: A unified digital platform to simplify insurance processes and enhance accessibility.
- Bima Vistaar: Comprehensive coverage for rural India.
- Bima Vahak: Empowering women for insurance distribution.
- Pradhan Mantri Suraksha Bima Yojana (PMSBY): Provides accidental death and disability cover.
- Pradhan Mantri Jan Arogya Yojana (PM-JAY): Offers health cover of ₹5 lakh per family per year for secondary and tertiary care hospitalization.
- Pradhan Mantri Fasal Bima Yojana (PMFBY): Crop insurance scheme to protect farmers against crop loss
Source: ET
Previous Year Question
Consider the following:
1. Hotels and restaurants
2. Motor transport undertakings
3. Newspaper establishments
4. Private medical institutions
The employees of which of the above can have the ‘Social Security’ coverage under Employees’ State Insurance Scheme?
[UPSC Civil Service Exam – 2012 Prelims]
(a) 1, 2 and 3 only
(b) 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
Answer: (d)