Government should launch a ‘Jan Bima Yojna’ on the lines of a similar programme launched for banking, says Insurance Regulatory and Development Authority (IRDA) chairman T S Vijayan.
“The Prime Minister should launch ‘Jan Bima Yojna’ in line with the ‘Jan Dhan Yojna’. It has the potential to increase awareness among people on the importance of insurance,” Vijayan said at the 16th FICCI Annual Insurance Conference.
Pime Minister Narendra Modi launched the ‘Jan Dhan Yojana’ in August this year to deepen the banking penetration. With opening of over 6 crore bank accounts of the targeted 7.5 crore, it has garnered positive response so far.
The Jan Dhan Yojana also consists of insurance component wherein the account holders are being given personal accident cover.
On foreign holding caps in the insurance sector, Vijayan said allowing 26 per cent FDI in the life and non-life companies has upped the industry’s growth to 3.9 per cent from the earlier 1.7 per cent. There is huge potential as the vehicle ownership is growing by over a million every year, he highlighted.