Those who do business in the stock market will now get the cover of life insurance on the minimum premium. For this, the country’s leading life insurance company, Life Insurance Corporation (LIC), has signed a Memorandum of Understanding (MoU) with Central Depository Services (CDSL).
A senior official of the Union Finance Ministry said that the agreement between the two organizations took place last week only. Under this, group insurance will be provided to persons of age 18 to 59 years. In this case, interested candidates will get a cover of one lakh rupees under group insurance scheme.
Cheap and convenient insurance options
According to Vipin Anand, regional manager of the Western Region of LIC, this agreement will provide cheap and convenient life insurance options among millions of people who invest in LIC and securities markets. This is also important for their institute because this initiative has been done on the 62nd installation year of LIC.
He says that in the case of settlement of claims, the settlement agreement with CDSL of number one LIC is expected to help in establishing a trust relationship among those who invest in the stock market. It is worth mentioning that at present CDSL has 1.58 crore demat accounts, which is 48 per cent of the total industry.
Country on the last footing in insurance
India is considered as the under-insured country taking less than other countries in the world. In India’s GDP, the share of insurance premium is only 3.9 per cent, whereas in this case the average worldwide is 6.3 per cent.
In terms of insurance value, India is far behind other countries in the world. Against the GDP, the percentage of Sum Assured is 55%, whereas in Malaysia it is 160%, while Korea has 170%. The situation of other countries is even better than India.