Crop, motor and health insurance policies majorly enabled the non-life insurance sector to log 33 percent growth in 2016-17, the Economic Survey 2017-18 said on Monday. According to the Survey, tabled in Parliament on Monday by Finance Minister Arun Jaitley, during 2016-17, the Gross Direct Premium (GDP) of non-life insurers (within India) was Rs 130.97,000 crore, registering 33 percent growth (highest ever since 2000-01). Crop insurance, motor sales, health insurance and others helped the industry report this growth.
On the other hand, the life insurance industry recorded a premium income of Rs 418,000 crore as against Rs 367,000 crore in the previous financial year, registering a growth of 14.04 percent, the Survey said. As regards the spread of insurance in the country, the Survey said the insurance penetration which was 2.71 percent in 2001, increased to 3.49 percent in 2016 (life 2.72 percent and general or non-life 0.77 percent). Insurance penetration is defined as the ratio of premium underwritten in a given year to the gross domestic product (GDP).
The insurance density in India, which was $11.5 in 2001, has increased to $59.7 in 2016 (life 46.5 and general 13.2). Insurance density is defined as the ratio of premium underwritten in a given year to the total population (measured in US$ for the convenience of international comparison), the Survey said.