npavan78
06-07-2008, 10:13 AM
Insurance companies may earn about Rs 1,000 crore by offering innovative schemes at affordable premium to the rural folks who are looking for alternate saving channels, a study said.
Assocham in a paper 'Rural India and Its New Investors' said rural folks rely more on post offices and commercial banks to save their surpluses in the absence of other suitable saving channels.
About 200 million rural investors are looking for other safer savings channels for higher returns on their investments and insurance companies could be the best and viable option for them, Assocham President Sajjan Jindal said.
Rural India's income have risen as more and more people are also shifting to non-farm activities like dairy, food processing and packaging. Out of over 700 million rural population, about 200 million have reasonable per capita income as they are indulging in both agriculture and non-agriculture activities, it said.
At present, only 8-10 per cent rural households are covered under life insurance schemes and remaining 90 per cent could be targeted for new innovative insurance schemes, the study said.
The public and private insurance companies can introduce affordable insurance schemes with their premium keeping at Rs 500 to Rs 1,000 per month. With this premium, the companies can design schemes that can cover rural youth for about Rs 50,000-Rs 1 lakh for a period of minimum 10 years, it said.
Firms can also lure rural investors for renovation and modernisation of their housing at 6-7 per cent rate, compared to 10-12 per cent rate in urban areas. Rural masses are in need of large sums for marriages in their families and other close relations and personal loan at affordable rates would be an ideal choice for them.
Assocham in a paper 'Rural India and Its New Investors' said rural folks rely more on post offices and commercial banks to save their surpluses in the absence of other suitable saving channels.
About 200 million rural investors are looking for other safer savings channels for higher returns on their investments and insurance companies could be the best and viable option for them, Assocham President Sajjan Jindal said.
Rural India's income have risen as more and more people are also shifting to non-farm activities like dairy, food processing and packaging. Out of over 700 million rural population, about 200 million have reasonable per capita income as they are indulging in both agriculture and non-agriculture activities, it said.
At present, only 8-10 per cent rural households are covered under life insurance schemes and remaining 90 per cent could be targeted for new innovative insurance schemes, the study said.
The public and private insurance companies can introduce affordable insurance schemes with their premium keeping at Rs 500 to Rs 1,000 per month. With this premium, the companies can design schemes that can cover rural youth for about Rs 50,000-Rs 1 lakh for a period of minimum 10 years, it said.
Firms can also lure rural investors for renovation and modernisation of their housing at 6-7 per cent rate, compared to 10-12 per cent rate in urban areas. Rural masses are in need of large sums for marriages in their families and other close relations and personal loan at affordable rates would be an ideal choice for them.