Insurance For All By 2047 Is Possible But Only With More Awareness: Tapan Singhel

Insurance for all will significantly impact the country. It will create a robust social security net and boost economic growth, potentially raising it by two to three percentage points. Insurance penetration, when viewed in terms of lives touched rather than just gross domestic product (GDP) has improved. My company alone covers 15 crore Indians. We are working on reaching the last mile through new initiatives in consultation with the regulator, including woman-centric distribution networks and products that blend life, health, and property coverage. These developments will trigger an explosion in insurance distribution.

The challenge lies in the practical execution of these ambitious targets and ensuring that the schemes are effectively reaching underserved populations. We are focused on how to reach each gram-panchayat, with products that are suitable for the last mile, and creating a distribution network that is both efficient and impactful.

It is a classic chicken-and-egg situation. For example, before the Ayushman Bharat scheme, rural healthcare infrastructure was limited. With the Jan Arogya scheme providing a Rs 5 lakh insurance cover, we have seen major hospitals expanding into tier-II and tier-III cities. Insurance coverage makes it financially viable for hospitals to operate in these areas because people can now afford healthcare services.

When insurance increases demand, it encourages supply. For instance, after the Aarogya scheme, there was a noticeable rise in hospital networks and infrastructure. Starting with insurance creates financial incentives for businesses to invest in healthcare facilities. We are already seeing more hospitals, medical colleges, and medical student seats.

So, insurance drives the development of healthcare infrastructure, leading to overall system improvement.

There has been criticism regarding the coverage of Ayushman Bharat. However, it is important to note that there have been significant improvements. For example, Maharashtra has expanded its coverage to include more people, and Rajasthan has added extensive features such as coverage for continuous dialysis. These developments show that the basic Ayushman Bharat program has laid a strong foundation, and subsequent enhancements are addressing earlier limitations.

The introduction of such schemes initiates a chain reaction. By putting resources directly into the hands of the masses, businesses follow, infrastructure develops, jobs are created, and the education system adapts to meet new demands. This interconnected growth contributes to overall economic advancement, which can result in significant GDP growth.

So, while there might be criticisms, the broader impact and improvements over time highlight the effectiveness and potential of such initiatives.

Insurance is something that if people are aware of, they will buy. I am very clear because the products are good, and it actually delivers a lot. It is only a question for those who are not aware and for whom insurance is not at the top of their mind.

So, we at the General Insurance Council have agreed to put together a part of our total premium for awareness creation. We are creating a pool for the next three to five years. Discussion is already happening with agencies to see how we can take it forward.

Simultaneously, when I talked to the chairman of the Insurance Regulatory and Development Authority of India (IRDAI), Debasish Panda,  he said even the regulators are putting together a campaign to create this awareness. When you put all this together, with all the industry putting in some money as a percentage of their premium and regulators putting in, that would be quite a bit of money coming in just for the creation of awareness and putting that together. So, you will be seeing this come together in just about the next three to four months. You will start seeing a lot of activity happening on this.

I think the mutual fund campaign would have done "sahi hai" because they were trying to show that this is the right way of investment. People might have apprehensions about mutual funds from an insurance perspective. In insurance, the focus is on securing the assets you have created and ensuring continuity if things go wrong, so you don't face a sudden fall.

The industry needs to raise awareness. The campaign might be different from mutual fund campaigns, but I am not an expert on that. My personal feeling is that we should focus on this. With multiple entities coming together and investing significant resources, I am very excited. It should be very effective.

Now, auto insurance is mandatory. So, let us figure out who is not insured. In today's era of data, you have the vehicle registration and insurance data of all the insured vehicles. The insurance data resides with IIP, a regulatory sponsor entity. Every company sends the data there. By matching the data, you can learn exactly who all are uninsured. That data is with the government and has been applied at the National Informatics Centre (NIC) level.

The Ministry of Finance and the Ministry of Road Transport have issued circulars to state secretaries, indicating that they now have access to understanding which vehicles are not insured. The goal is to take corrective action and ensure that these vehicles get insured. This is important because when road accidents occur and compensation is required, insurance coverage ensures that the financial burden does not fall solely on the vehicle owner. Without insurance, the burden could be overwhelming, potentially leading to bankruptcy.

On the home insurance front, I believe that the issue is more critical for Small and Medium Enterprises (SMEs) and Micro, Small, and Medium Enterprises (MSMEs). When a catastrophe strikes, it can devastate businesses, causing significant financial losses and potential bankruptcy. If these businesses had insurance, they could recover and continue operations rather than facing total loss. This is particularly crucial for a developing country like ours. Ensuring that individuals and businesses are protected from such risks is vital for maintaining economic stability and personal livelihood.