Is rural insurance making the type of inroads that liberalisation was aiming at?
Section 32B and 32C of the Insurance Act, 1938, specifically mention the obligation of all insurance companies to undertake such percentage of life and general insurance business in rural or social sector to be specified by the IRDA. Already, IRDA has notified the regulations on the obligations of insurers in this regard. Cooperative societies, panchayats, regional rural banks, rural agents, etc., are being encouraged to take up the profession of insurance agency to increase the spread of insurance business in rural areas. Nationalised insurance companies have brought out a variety of policies to cover the lives and rural assets of rural public. According to the new definition of rural areas by IRDA, LIC has 18 per cent of its policies in rural areas. The new companies have also brought out a variety of products, but it is too early to assess their performance because most of them commenced business during this financial year. What role does the ministry have in mind for promoting banc
