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VOL. 12, ISSUE 2 (2026)
Prospects of micro insurance: A financial safety net to empower the poor
Authors
Dr. Amit Chakraborty
Abstract
In the developing countries like India, where according to some indicators,
such as GDP, Global Hunger Index, and foreign trade; the economic growth has
definitely been improved but still this growth has not yet been reflected in
particular sections of the society. Deprivation of this section is more acutely
observed in the case of vulnerable and marginalized sections belonging to the
lower income groups. In this context, the concept of micro insurance has been
introduced as one of the financial instruments to repel the associated
deprivation. This study makes an attempt to measure the operating performance
of micro insurance business of public and private micro insurance companies in
Indian context. The paper also tries to measure the variation of premium
collections, number of lives covered, number of agents and number of products
offered by the micro insurance companies in individual and group schemes
between public and private insurance companies. For this purpose, secondary
data were retrieved from the IRDAI by considering both public and private
insurance companies for sixteen years period from 2007-08 to 2022-23. However,
to maintain the comparability of the data, period of 2018-19 has been
eliminated from the data series as the LICI has no business in group micro insurance
segment in the year of 2018-19. The statistical result shows that the number of
policies issued, premium collection in terms of individual category and number
of issuing schemes is much higher for public companies. However, in the case of
other variables; the performance is better for private micro insurance
businesses as a whole as compared to that of LICI. It is also observed that the
number of micro insurance product offered by the private players in individual
category is much higher as compared to group category. The present study also
prescribed several suggestions for the betterment of micro insurance policy in
Indian economy.
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Pages:7-11
How to cite this article:
Dr. Amit Chakraborty "Prospects of micro insurance: A financial safety net to empower the poor". International Journal of Commerce and Management Research, Vol 12, Issue 2, 2026, Pages 7-11
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