The journey of micro-insurance in India--a snap shot.

Parvez, Mohd Azher ; Chary, T. Satyanarayana

Introduction

India a saint democratic country from Asia having population more than 1021 million is lagging behind in penetrating insurance to financial illiteracy and inability to take the existing broad insurance products and involuntary exclusion, thus, people at the bottom of the pyramid are away from the fray as cited. In order to include the poor, in recent past, Micro-insurance (MI) is introduced for social security that can outfit the needs of low income people of the country, particularly those who do not have access to conventional type of insurance. MI is an arrangement that offers financial protection to individuals and groups through the use of insurance as an economic instrument. It happens through small financial transactions that each insurance policy generates against specific perils in exchange of regular premiums and low coverage payments, proportionate to the likelihood and cost of the risk involved. It runs in accordance with generally accepted Insurance functions on the concept of risk pooling and likewise, regardless of its small unit size and its activities at the level of single communities. Broadly, we can say that it is a community based financing arrangement, including community health funds, mutual health organizations, rural health insurance, revolving drug funds and community involvement in user fee management. As of the community financing schemes have failed in reaching the expectations due to severe economic constraints, political instability and lack of good governance, the new solution is emerged in the name of MI.

MI links numerous small units into larger structures, creating networks that boost both insurance functions and support structures for improved training, data banks, research facilities, access to reinsurance etc. This mechanism is conceived as an autonomous enterprise, independent of permanent external financial lifelines, and its main objective is to pool both risks and resources of whole groups for the purpose of providing financial protection to all members against the financial consequences of mutually determined risks.

The notification of IRDA Regulations 2005, created a special category of MI. There has been a steady growth in the design of products to catering to the needs of the economically low income people of society under MI scheme. The flexibility provided in the Regulation allows the insurers to offer composite package products. Many Insurance companies have commenced their micro-insurance operations through new products in general and life categories in particular. The sum assured for the products is affordable to low income people of the society. So considerably business has strengthened and shown a decent growth, though the volumes are still small. In India, many organizations working on this MI, some of them are introduced in the following lines: Vimo SEWA--1992, Activists for Social Alternatives (ASA)-1993, Spandana--1998, Shepherd--1999, Yeshasvini Trust--2002, Karuna Trust--2002, BPL families (hospitalization) and Jandhan yojana--2014.

2. Review of Literature

It is very glare that the importance on micro insurance is growing in India. It is due to the development concept creeping in the light of liberalization, globalization and privatization that have brought the changes in the economic dimensions. Hence, there are limited studies on micro insurance in India. Some of the important studies are discussed in the following lines.

Syed Abdul Hamid, Roberts and Paul Mosley (2010), stated that there is a positive impact of micro health insurance in the eradication of poverty among rural households of Bangladesh. Micro health insurance has a significant beneficial effect on food sufficiency of poor's and has a dynamic improvement in the health status of poor rural households.

Akila Prabhakar (2010), states that it will delve into both the risks and rewards of implementing insurance on a micro level within India, focusing a majority of the attention to social barriers and ultimately benefits that can be attained with its implementation. Being a burgeoning industry within the country, there is evidence which shows the social benefit to those who are poverty stricken and utilize micro-insurance. This not only shows that there is an issue involving both rainfall or lack thereof and farmer suicide, but also that there is grounds for a solution. Its focuses on indexed rain insurance, a subset within the micro-insurance industry and discusses how this particular type of insurance can help alleviate the issue of farmer suicide. Being compensated for lost crops due to less rainfall than expected will not further a farmer's indebtedness and will discourage them from committing suicide.

The study of Gunita Arun Chandhok (2009), indicates that there is a huge untapped market for micro health insurance and majority of population are aware and understand the importance of micro health insurance. Thus, MI will go a long way in eradicating poverty. If the various MI models are implemented effectively by Insurer, MFI's, SHG's, NGO's, Health institutions, Donors and Co-operatives the BPL population will lead a peaceful and secure life.

Lena Giesbert (2008), states that the potential demand for insurance in the survey area seems to be very high within 95 percent of the non-insured households showing a general interest to buy insurance. Most of the potential clients are interested in health, death, or old age insurance. Hence, the survey states that MI providers reached a high number of clients in the survey area but mostly to the richer people. The group of poor segments in society seems to be rather limited by micro insurance.

The study of Venkata Ramana Rao (2008), reveals that MI is not an opportunity but a responsibility and to serve this responsibility good awareness campaign is needed. Micro insurance is offering real solutions to the billions of rural poor that raises the awareness of micro insurance as a key issue in coming future. M. Ziaulhaq Mamun (2007), in his study discuss three basic models of micro insurance, that is Provider model, Insurer model and Linked model. As per the study, linked model is the best suitable model for the improvement of poor's conditions in Bangladesh, but presently they are using Insurer model, which is less productive for poor's social security.

The study of Anuradha K. Rajivan (2007), reveals that planned actual steps to address constraints like poverty that will help to express the insurability of the poor in the future and the study also shows that micro insurance is on the edge of floating take off in India. The current interest from the different stakeholders, combined with the solid movement provided by the November 2005 directive of IRDA, concrete, complementary catalytic support will enable all the stakeholders to play a more pro-active role. However, according to the insurance companies micro insurance is so far to be a proven business offer, so investment from their side is limited and efforts from few NGO's and MFI's have resulted in the introduction of micro insurance as an add-on to their existing micro credit projects & utilities for the rural poor's.

According to the research study by Ana Paola Gomez, Sarthak Gaurav and Luis Flores Ballesteros (2007), it is evident that rural households need a dependable, useful, transparent and affordable solution to effectively deal with risk and shocks they face and micro insurance is one of the effective risk management tools for the development and addressing critical risk of the rural poor.

R. Holzmann and S. Jorgensen (2000), in their paper, propose a framework for Social Protection grounded in Social Risk Management (SRM). The concept repositions the traditional areas of Social Protection it is an labor market intervention, social insurance and social safety nets in a framework that includes three strategies to deal with risk namely prevention, mitigation and coping. This expanded view of Social Protection emphasizes the double role of risk management instruments protecting basic livelihood as well as promoting risk taking. It focuses specifically on the poor since they are the most vulnerable to risk and typically lack appropriate risk management instruments, which constrains them from engaging in riskier but also higher return activities and gradually moving out of chronic poverty.

3. Objective of the Study

1) To study the features, role of intermediaries, delivery models, products, trend of premium and claims as well as challenges being faced by Micro-Insurance.

2) To analyze the performance of Individual and Group Micro-Insurance in India.

3) To study the impact of Micro-Insurance on poverty eradication.

4. Hypotheses

Ho1: There is no significant difference between the trend of Premium and Claims in Micro-Insurance.

Ho2: The impact of Micro-Insurance on Poverty eradication is not significant.

5. Data and Methodology

The present study is an analytical and empirical one. The data used in the study has been collected through secondary sources on Micro- insurance from 2007 to 2015 from IRDA, website. To analysis the data with regard to appraisal of performance towards growth and development of MI for low income people, different distinguished variables, viz, policy preference of customers, premium paid, claims settled and the general variables, such as GDP and Poverty are taken into consideration. In order to ascertain the hypotheses, co-efficient of correlation, Probable Error of Correlation of Coefficient (PECC) and t-test are employed.

6. Micro-Insurance Features

There are numerous features with regard to MI, some of the important and main features are discussed below.

1. Less transactional cost, this leads and reflect to members to pay premium without fail.

2. The target consultation consists of those with low incomes, traditional jobs or businesses and a limited knowledge of insurance and the remuneration that it affords.

3. Clients are fundamentally low net appeal but not necessarily consistently poor.

4. More flexibility is possible in both product design and premium payments. Due to the irregular income stream of the police holders, MI planning may allow payments to be made at irregular times and irregular amounts.

5. The essential role of the network of micro-insurance units is to improve risk management of the members of the entire group of MI units over and above what each can do when operating as a stand alone entity.

6. The claims process is faster and less complicated, involving substantially less documentation. As a result, MI claims are usually resolved quicker than most insurance claims, which must go through a more stringent assessment process.

7. Underwriting is a simpler procedure, there are fewer terms and conditions and exclusions as relatively small sums are concerned.

7. Intermediaries of Micro-Insurance

Micro-insurance businesses are offered through many intermediaries, they are: l.Self-Help Groups (SHG), 2.Non-Government Organizations (NGOs) 3.Micro-Finance Institutions (MFIs) and 4.Healthcare providers and informal mutual assistance/friendly societies or community schemes. SHG is also called as licensed insurers teaming up with banks, local shops and labour unions to offer micro-insurance products, effectively reversing historical issues of distrust and allowing the products to reach greater numbers of people. They include large, multinational corporations that serve the retail markets and smaller micro-insurance exclusively local entities. Given the nature of the target market, there are number of ways in which the products can be advertised, offered and delivered with innovation as a key.

The prerequisite has motivated life insurers to request partnership with MFIs and NGOs to act as agents, selling and servicing the insurer's policies. This representation of alliance is called as the partner-agent representation, which has become the dominant approach to micro-insurance in India and the situation has become optimistic. So many MFIs switched over from a full-service to a partner-agent approach.

8. Growth of Micro-Insurance Agents in Life Insurance

It is beyond-doubt that MI has played a pervasive role in the process of economic growth and development to low income sector, though the volume is still too small. Development of the micro insurance sector requirements a longer term perspective that combines awareness to customer priorities with market development and financial viability, in this process agents are available for developing a business in life, non-life and group business by both in private companies and public but in public, it have only one company that is LIC for providing services for growth in micro-insurance. It is evident from statistics that agents in Micro Life Insurance, both, private and public companies were initially only 1311 in year 2007 that has been moved 4584 at a growth of 349.66 per cent. Further moved to 7250, 8676, 10482, 12797, 17052, 20057 and 20855 at a growth of 553.01 per cent, 661.78 per cent, 799.54 per cent, 976.12 per cent, 1300.69 per cent, 1529.90 per cent and 1590.77 per cent respectively in the years of 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015. When the private sector is compared to public sector, the growth of private sector is very significant. Hence, the overall growth in number of Agents in the domain is averagely 4859.27 per cent.

9. Micro-Insurance Delivery Models and Mechanism

One of the greatest challenges for micro-insurance is the actual delivery to policyholders. Methods and models for doing so vary depending on the organization, institution, and provider involved. Thus, there are four main methods for offering micro-insurance, namely, the Partner Agent Model (PAM), Provider Driven Model (PDM), Full Service Model (FSM) and Community Based Model (CBM) (Dubby Mahalanobis, 1989). Such models are discussed in a brief manner in the fallowing lines

1) PAM: A partnership is formed between the MI scheme and an insurance companies, in some cases a third-party healthcare provider in general insurance.

2) FSM: The micro-insurance scheme is charge of everything; both the design and delivery of products to the policyholders, working with external healthcare providers to provide the services.

3) PDM: The healthcare provider is the MI scheme and similar to the full-service model, is responsible for all operations, delivery, design and service.

4) CBM: The policyholders are in charge, managing and owning the operations, and working with external healthcare providers to offer services.

There are certain steps in the mechanism of MI, they are:

1. Prepayment and resource-pooling: The regular prepayment of contributions before the insured risks occur that is pooled together.

2. Risk-sharing: The pooled contributions are used to pay a financial compensation to those who are affected by predetermined risks, and those who are not exposed to these risks do not get their contributions back.

3. Guarantee of coverage: A financial compensation for a number of risks, in line with a predefined benefits package.

MI can be like regular insurance, it may be offered for a wide variety of risks. General MI products risks associated with health and belongings, such as, hut, livestock, tools, instruments, any personal accident either on individual and group basis. They enable beneficiaries to reach the paramount of social security and stability, hence, the major products that help the issue are:

(1) Life Credit: Credit life protection is the most popular MI product globally, usually manifested as a life insurance policy considered paying off a borrower's arrears if that borrower dies, such insurance may primarily benefit the lender.

(2) Life retirement savings plans: Pensions are particular consideration for those employed in low paid manual work. Products aimed at mobilizing long term savings and encourage wealth creation are more immediate solutions to wealth management for those with low incomes.

(3) Life fortification: Life insurance can be offered as a MI product, providing dependants of the policy holder with a lump sum and maintenance payments for a set or indefinite period following the policyholder's death.

(4) Agriculture: It is the insurance to protect against weather risks, pest, diseases and economic problems to both individual farmers and governments in economies. For individuals, agricultural insurance offers protection against loss of income and the cost of transformation, whereas for governments it can allow risk shifting to other sectors of the economy.

12. Challenges

1) Lack of awareness: One of the major challenges being faced by the MI sector is lack of awareness about insurance itself and insurance products among people with low income. They prefer to rely on traditional provision and religious practices. This opinion means that smaller quantity people in lower income families would consider taking out insurance which in turn leads to lack of demand. Due to a lack of information about the benefits of insurance people are often wary of it and view it in a negative light.

2) Products habitually not what people need: MI providers are required to alter their products to the needs of their low income target market. Homogeneous products often do not meet these needs. By providing additional services information such as preventative consultations with doctors or weather forecasts on crops, insurers could encourage people to view insurance in a more positive light which might lead to increased demand.

3) Comparative Costs and Complications: MI applying consistent methods find that operating costs are very high due to the different circumstances they face in target markets including trying to a reach a population spread out over a large area. Many large insurers do not have much experience ol selling to people on low incomes, which can be a barrier to entry and although the claims process is usually simpler than that of other forms of insurance, it can be extremely difficult to modify what essential paperwork is required to the understanding and level of the target market.

4) Require of worth data on risk: Requirement of worth data makes it difficult to assess, price the risk, etc, and products need to be reasonably priced to attract consumers but they also need to be profitable. In order to persuade people to buy insurance it is necessary to demonstrate that insurers understand the risks they face, such as the risks faced by farmers in a particular rural area.

5) Parameter: Insurance parameter aimed at large insurance companies could hinder the growth of MI barriers, such as extensive compliance which creates a demanding administrative burden can deter insurers from entering the sector and limit its growth. Governments need to use a focused approach towards MI and simplify regulation to encourage growth in the sector.

13. Policies Offered by Life Insurance Companies Under Micro-Insurance

In India there are many insurance companies offer MI policies and some initiatives taken by public and private companies for doing so. The Low income people not only want insurance to be affordable amount, but also to protect against high incidence risks such as sick health, accidents, crop letdown and fire etc. But insurance companies mostly offer standardized products for consumers that are comparatively better. The companies that offer MI policies to low income people are: Life Insurance corporation of India, Bajaj Allianz, Birla Sun Life, ICICI Prudential, IDBI federal life insurance, Tata AIG life, SBI Life, Aviva Life, ING Vysya, etc. The policies offered by those companies are: Jeevan Madhu, Jeevan Mangal, Jeevan Amrit Yojana, Alp Nivesh Yojana, Jana Vikash Yojana, Saral Suraksha Yojana, Bimakavach, Bima Suraksha super, Bima Dhan Sancahy, Sarv Jana Suraksha, AyushmanYojana, Sampoorn Bima Yojana, Sumangal Bima Yojana, NavkalyanYojana, Grameen Shakti, Grameen Super Suraksha, Jan Shuraksha and Saral Suraksha.

14. Analysis, Discussion and Findings

Performance of Individual and Group Micro-Insurance sectors in India

Table I made an attempt to study the Performance of individual and Group business under Public and Private MI from inception of the same. The analysis is made for the period of 8 years, i.e, from 2007-08 to 2014-15. The analysis is pertaining to business Performance variables namely Policies, Premium and Claims of individual and Groups. It is evident that the performance of MI by Public and Private segments is not constant, as it fluctuated in most of the years, particularly in 2007- 08, the total Premium and Claims of Individual and Groups was very less by Rs 1823.10 lakhs, Rs 70.32 lakhs, Rs 20127.46 lakhs, Rs 12099.8 lakhs respectively. Similarly, in the year 2007-08 it was 937768 in Individuals and 12242027 Group Policies business into MI sector was found.

The MI sector reported with a marginal change in Policies (Yojana), hence, the highest increase is found by Rs 15822.29 lakhs, Rs 24341.81 lakhs, in the year 2009-10 in individual and group Premiums. Similarly, the MI sector registered the highest claims on policies in the year 2012-13 by Rs 2300.74 lakhs, and 2013-14 Rs 45024.7 lakhs in the both groups respectively. By the time span of 8 years, an average Performance of MI sector in terms of Premium and Claims were found at Rs 8666.57 lakhs, Rs 1508.27 lakhs in Individuals and in Groups it is about Rs 19888.6 lakhs, Rs 30005.9 lakhs respectively.

Where as, in the case of Policies it was found at 2870609 and 14672292 in both categories respectively. On the other hand, growth in individual and groups in policies growth is found at a lowest rate, i.e., 229.5 per cent in year 2008-09, similarly, it was found at 83.3 per cent in 2011-12. Consequently, the highest figure of growth was found i.e, 537.0 per cent in year 2012-13, 188.9 per cent in year 2014-15 respectively.

As far as Premium and Claims are concerned a lowest growth rate has been registered by MI i.e, 200.6 per cent and 547.4 per cent in year 2008-09, in groups it was 54.6 per cent in year 2011-12, 128.2 per cent in year 2008-09. The highest growth of 867.9 per cent is found in premiums in year 2009-10, and by claims about 3390.8 per cent in year 2013-14, where as in groups it was 156.8 per cent in year 2014-15, 372.1 per cent in year 2013-14 respectively.

Thus, the performance of MI sector is very minimal and indicates that the changes in Policies of the government and the other relevant sensitive variables of MI are significantly influenced by Indian business environment. The policies, premium and claims were also significantly moved ahead due to reflection of development process of the country and all schemes that have been assisting the low income people (See table I).

Table II is an attempt to study the Impact of Micro-insurance on eradication of Poverty, through the data from 2007-08 to 2014-15, pertaining to Business Performance variables, viz Policies, Premium and Claims, Total life Premium of Insurance sector (Individual and Group Insurance), Total life Claims of Insurance sector (Individual and Group Insurance), etc. The table shows that Total life Premium of Insurance sector in general moved-up during the study period, which was Rs. 201351.41 crores in the year 2007-08 that has been moved to Rs. 221785.47 crores in year 2008-09 at a growth rate of 110.15 per cent, further, moved to Rs. 265447.25 crores, Rs. 291638.64 crores, Rs. 287072.11 crores, Rs. 287202.49 crores, Rs. 314301.66 crores, Rs. 328101.14 crores at a growth rate of 131.83 per cent, 144.84 per cent, 142.57 per cent, 142.64 per cent, 156.10 per cent and 162.95 per cent in the years 2009-10 to 2014-15 respectively. It is evident that in the year 2009-10 the policies and premium are not constant over the study period as the highest number of policies are issued to 1.98 crore of people that is equal to Rs 40.16 crores of premium. In terms of growth, it is found at 150.45 per cent and 182.97 per cent from beginning of the study period to end of the study period respectively. On the other hand, the lowest number, i.e, 1.32 crore policies are issued against to Rs 219.51 crore of premium in 2007-08. The trend of policies and premium was found almost similar. Hence, the overall performance of MI over the study period registered at 1.75 crore policies against Rs 285.55 crores of premium at a growth rate of 133.1 per cent and 130.1 per cent respectively. On the other hand, the poverty was declined from 44.96 crores in 2007-08 to 42.84 crores in 2008-09, which is almost a big off by 95.29 per cent. Further, it moved in terms of population to 38.68 crores, 36.56 crores, 32.39 crores, 27.60 crores, 23.30 crores and 16.30 crores at a decline rate of 86.03 per cent, 81.32, 2.05 per cent, 61.38 per cent, 51.82 per cent and 36.25 per cent over the years 2009-10 to 2014-15. Correspondingly, it is also evident from the table that life insurance claims are not constant over the study period. The highest claim of Rs. 16619.00 crores was happened 2014-15. The lowest amount of claims, i.e, Rs. 5740.26 crores was found in 2007-08. On the other hand, Claims in MI were initially only Rs 121.70 crores in year 2007-08 that has been moved to Rs 158.93 crores at a growth rate of 130.59 per cent in 2008-09. Further, it moved to Rs 187.63 crores, Rs 225.48 crores, Rs 438.87 crores, Rs 464.62 crores, Rs 474.09 crores and Rs 449.81 crore at a growth rate of 154.17 per cent, 185.27 per cent, 360.62 per cent, 381.77 per cent, 389.55 per cent and 369.6 per cent in the years of 2009-10 to 2014-15 respectively. Correlation of Coefficient (C.C) between Policies in MI sector and Poverty eradication is found at 0.65. It indicates that the policies and schemes provided by the government to low income people is significantly influenced by the communication of beneficiaries to non-beneficiaries of MI. Hence, the eradication of poverty was influenced by MI very significantly (See table II for details).

16.1 Hypothesis I

Ho1: There is no significant difference between the trend of Premium and Claims of Micro-Insurance.

Results and Decision Test Sig. d.f Calculated Critical Decision Applied level value value t 5% 7 0.31369 1.895 Accepted

The calculated value of 't' between Premium and Claims of Micro-Insurance is 0.31369 against the critical value 1.895. As the calculated value is lesser than the critical one, so the hypothesis is accepted. Hence, it can be concluded that there is no significant difference in the trend of Premium and Claims of Micro-Insurance.

16.2 Hypothesis II

Ho2: The impact of Micro-Insurance on Poverty eradication is not significant. r value PECC (Calculated value) Decision MI Poverty eradication -0.65 0.271 Accepted

The calculated value of PECC between MI on Poverty eradication is 0.271 against the observed value of r -0.65. As the value of PECC is higher than the 'r' the hypothesis is accepted that the impact of MI on Poverty eradication is insignificant.

17. Conclusion

MI is expected to make an enormous change in people's lives by serving and cushioning them against all ills and finally to make them to move from the poverty. So MI has become a feasible option for low income households to protect against adverse events as cited above. It is also considered as a tool by governments to chase economic and industrial development. Similarly, the impact of claims of MI is very high as the flow of money in terms of claims is higher than the premium paid. On the other hand, the impact of MI is also very minimal on poverty eradication as the awareness is very less to poor people in realizing the utility of MI. Hence, if the hurdles of MI have been put out by providing the needed awareness to the people particularly the benefits of Micro insurance and how it can protect their lives against unanticipated events and its ultimate help to come out from the fray of poverty, it is beyond-doubt that the poor will move on the path of out of harm's way and blissful life.

Paper received on February 19, 2016

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Mohd Azher Parvez

Research Scholar, Department of Commerce, Osmania university, Hyderabad.

T. Satyanarayana Chary

Dean, Faculty of Business Management, Telangana university, Nizamabad, Telangana. Table--I Policies, Premium and Total Claims Under Micro-Insurance Year Policies Premium (Rs Lakh) Individual Group Individual Group 2007-08 937768 12242027 1823.10 20127.46 2008-09 2152069 12551809 3656.55 20595.34 (229.5) (102.5) (200.6) (102.3) 2009-10 2983954 16842070 15822.29 24341.81 (318.2) (137.6) (867.9) (120.9) 2010-11 3650968 15259001 13040.85 15522.81 (389.3) (124.6) (715.3) (77.1) 2011-12 4620443 10194904 11567.71 10982.30 (492.7) (83.3) (634.5) (54.6) 2012-13 5036139 13981322 10967.59 21802.65 (537.0) (114.5) (601.6) (108.3) 2013-14 2767159 13179044 9565.06 14176.68 (295.1) (107.7) (524.7) (70.4) 2014-15 816368 23128161 2889.45 31560.02 (87.0) (188.9) (158.5) (156.8) Avg. 2870609 14672292 8666.57 19888.6 Year Total Claims (Rs Lakh) Individual Group 2007-08 70.32 12099.8 2008-09 384.95 15507.9 (547.4) (128.2) 2009-10 831.23 17931.9 (1182.1) (148.2) 2010-11 1704.76 20843.4 (2424.3) (172.3) 2011-12 2138.9 41748.6 (3041.7) (345.0) 2012-13 2300.74 44161.0 (3271.8) (365.0) 2013-14 2384.43 45024.7 (3390.8) (372.1) 2014-15 2250.87 42729.7 (3200.9) (353.1) Avg. 1508.27 30005.9 Source: IRDA annual repots Table--II Micro-Insurance Sector on Poverty Eradication Year Total life Premium % of life Total life Total Premium of MI Premium Claims claims of of of of MI Insurance Insurance Insurance over Premium of MI 2007-08 201351.41 219.51 0.11 5740.26 121.70 2008-09 221785.47 242.52 0.11 6662.06 158.93 (110.15) (11.48) (116.06) (130.59) 2009-10 265447.25 401.64 0.15 8219.81 187.63 (131.83) (182.97) (143.19) (154.17) 2010-11 291638.64 285.64 0.10 10404.41 225.48 (144.84) (130.13) (181.25) (185.27) 2011-12 287072.11 225.50 0.08 11616.39 438.87 (142.57) (102.73) (202.37) (360.62) 2012-13 287202.49 327.70 0.11 13024.91 464.62 (142.64) (149.29) (226.90) (381.77) 2013-14 314301.66 237.42 0.07 15188.02 474.09 (156.10) (108.16) (264.59) (389.55) 2014-15 328101.14 344.49 0.10 16619.00 449.81 (162.95) (156.94) (289.52) (369.60) Avg. 274612.5 285.55 0.10 10934.36 315.14 (136.38) (130.1) (190.48) (258.95) Correlation of Coefficient (C. C) between Policies and Poverty eradication--0.65 Year % Total life Policies Poverty Claims of (population) (population) Insurance over Total claims of MI 2007-08 2.12 1.32 44.96 2008-09 2.38 1.47 42.84 (111.53) (95.29) 2009-10 2.28 1.98 38.68 (150.45) (86.03) 2010-11 2.17 1.89 36.56 (143.47) (81.32) 2011-12 3.78 1.48 32.39 (112.40) (72.05) 2012-13 3.57 1.90 27.60 (144.29) (61.38) 2013-14 3.12 1.59 23.30 (120.98) (51.82) 2014-15 2.71 2.39 16.30 (181.67) (36.25) Avg. 2.88 1.75 32.83 (133.10) (73.02) Correlation of Coefficient (C. C) between Policies and Poverty eradication--0.65 Source: IRDA, RBI and Economic survey