Describing India as an aspirational country,Vice President M Venkaiah Naidu said that the Insurance Industry must play a pivotal role in India’s growth story by offering innovative risk covers, policies and schemes.
Addressing a gathering after inaugurating the Centenary Celebrations of the New India Assurance Company, here today, he asked them to make India fully insured at the earliest.
Expressing concern over low penetration of insurance in the country, Naidu asked insurers to devise simple, unique and innovative policies so that people buy products on their own.
Insurance should become assurance that would be good for the country," he said.
The Vice President said that the overall insurance penetration reached only 3.69 per cent in 2017. The Insurance Industry that is projected to grow to US $ 280 billion by 2020 must take the responsibility and make India fully insured, he added.
Saying that the true worth of an insurance company is gauged by its claims settling performance, the Vice President said that supporting country’s various socio-economic classes and fulfill their aspirations for a bright and secure future is a great challenge and asked companies to supplement the efforts of the government to provide insurance to all.
Complimenting the NIA for playing an important role in the government-backed insurance schemes under the Pradhan Mantri Jan Dhan Yojana, namely Pradhan Mantri Surakhsha Bima Yojana, Rashtriya Swasthya Bima Yojana and other mass health insurance schemes or the country-wide crop insurance scheme Pradhan Mantri Fasal Bima Yojana, the Vice President said the fruits of development must reach poorest of the poor.
"Both financial inclusion and industrialisation have to take place hand in hand for India to continue its onward march to become one of the leading economies in the world in the next two decades," he said.
Noting that India is part of the globalised world, Naidu said that "entire world is watching us".
Commenting on the efficacy of the recent `Demonitisation initiative',he further said the Reserve Bank of India (RBI) and the Income Tax Department should ascertain at the earliest whether the money deposited in banks post demonetisation was "white or black" in order to maintain the credibility of the reform.
Naidu said that there was widespread cynicism about demonetisation and people wanted to know what the gain was when the entire money has reached the banks.
"What was the purpose of demo (demonetisation)? Apart from counterfeit notes, the purpose was to bring money into the system. So, mo ney reached banks with address. What else you want!," he said.
Rajiv Kumar, secretary, department of financial Service, ministry of finance, said availability of all the products on e-platform is the new technological way and is the way business is to be done in the times to come.
“The requirement of the youthful population mandates that we have sufficient reforms in the product, design, delivery and services so as to keep at pace with the future.Simplicity in policy design, suitability in pricing and swiftness in claim payments need to be the guiding mantras for the future,’’ he said.
G Srinivasan, CMD, NIA said, “The company has played a significant role in the insurance sector history not only in India but across the globe. The history of NIA is the history of insurance sector in India. The company has been market leaders in product innovation, process innovation and setting various benchmarks for the industry.’’
Today with company’s presence spanning from New Zealand in the east to Aruba in the west, we can proudly say that it’s the hard work and dedication of NIA employees who have helped us achieve this feat, he noted.
“As we look back with pride at our milestones, we also look ahead, rededicating ourselves to continue on this path of being trailblazers.” said Srinivasan.