Insurance industry working towards financial inclusion for the needy
People having low incomes find it difficult as it is to make ends meet. It is not reasonable to expect them to have the money or the desire to invest in safe guard products like insurance when they find it an uphill task to even access bank accounts and other low cost funds.
The result is that any unfortunate event such as a theft can really set them back severely as they do not have the backing of a good contents insurance policy to support them. This leads them to access high cost funds from the alternative market for credit and then they are sucked into a vortex of high debt. The situation only becomes worse for them from then on as nobody would lend money to them at low interest rates even if they display the intention to settle their liabilities.
Insurers are doing their level best to reach across to such sections of the population through their products in partnership with government bodies and other charitable organizations. They want to ensure financial inclusion of such sections so that unfortunate events do not alienate them further from the mainstream.
published:
20/03/2010 11:00:00
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