Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

India is world's second-most underinsured country: Survey

India, Bangladesh, Vietnam, Philippines and Indonesia are the most exposed countries to natural disasters

October 22, 2018 / 05:43 PM IST

India is the second-most underinsured country in the world with an insurance gap of $27 billion (approximately Rs 1.98 lakh crore). A survey by specialist insurance and reinsurance market Lloyd’s said while India’s overall level of insurance penetration (total insurance premiums as a percentage of the gross domestic product) has increased 0.2 percent since 2012, it continues to have one of the highest underinsurance levels globally.

Insurance gap refers to the gap between the actual sum assured required versus that taken. For example, if the insurance needed is Rs 100 and an individual has taken Rs 40, the insurance gap is Rs 60.

Underinsurance is a serious issue because it reflects that a country has to pay the financial costs of any large claims out of their own pockets. An insurance gap occurs when a country's citizens do not buy adequate insurance cover for covering their risks.

The research has been done in partnership with the Centre for Economic and Business Research (CEBR).