Life Insurance - Social Security & Financial Inclusion

Abstract

Social protection or social security is a set of human rights designed to reduce or prevent poverty and vulnerability throughout the life cycle and includes benefits for children and families, maternity, unemployment, employment injury, sickness, old age, disability, survivors, and health protection provided to citizens by a mix of contributory schemes (social insurance) and non-contributory tax-financed benefits, including social assistance. There are significant coverage gaps in the provision of these welfare services including insurance and pension in India mainly due to low investment in the provision of such services by the state, poor affordability among a large section of the society particularly in the informal sector and lack of awareness and financial literacy of a large section of the population. The regulators which are entrusted with both the development and regulation of the insurance and pension sector would have to tackle the issue both from the supply/ distribution and the demand/ policy holder/ subscribers side.