Insurance is one of the emerging and growing sectors in India. The micro-insurance portfolio has made steady progress. More life insurers have commenced their micro-insurance operations and many new products are being introduced every year. Micro-insurance business was procured largely under the group portfolio. Life Insurance Corporation of India contributed the most both in terms of policies sold and number of micro-insurance agents. Insurance companies are now offering already approved products as micro-insurance products with the approval of the authority, if the sum assured for the product is within the range prescribed for micro-insurance. With this aspect the present paper made an attempt to discuss about micro insurance portfolio of individual as well as group by public and private sectors insurance companies.

1. International Journal of Social Science & Interdisciplinary Research________________________________ ISSN 2277-3630
IJSSIR, Vol. 5 (3), MARCH (2016), pp. 72-77
Online available at indianresearchjournals.com
72
MICRO INSURANCE PORTFOLIO OF PUBLIC AND PRIVATE
SECTOR INSURANCE COMPANIES
DR. C.PARAMASIVAN
ASSISTANT PROFESSOR
&
S.RAJARAM
PH.D FULL TIME RESEARCH SCHOLAR
PERIYAR E.V.R COLLEGE
TIRUCHIRAPPALLI-620023
ABSTRACT
Insurance is one of the emerging and growing sectors in India. The micro-insurance portfolio
has made steady progress. More life insurers have commenced their micro-insurance
operations and many new products are being introduced every year. Micro-insurance business
was procured largely under the group portfolio. Life Insurance Corporation of India
contributed the most both in terms of policies sold and number of micro-insurance agents.
Insurance companies are now offering already approved products as micro-insurance
products with the approval of the authority, if the sum assured for the product is within the
range prescribed for micro-insurance. With this aspect the present paper made an attempt to
discuss about micro insurance portfolio of individual as well as group by public and private
sectors insurance companies.
KEYWORDS: Micro insurance Portfolio, New Business micro insurance, Public sector
insurance and private sectors insurance company.
Introduction
Indian insurance sectors are one of the well organized and regulated sectors which
help to assists the overall capital flow of the financial system. Micro insurance is popularly
sold as an individual policy; Group Endowment is currently being issued by some Insurers
for economically weaker sections. Under this category, there is life protection, both on
survival and death. Pension can also be built into the product. Some Insurers offer accident
benefit and permanent disability benefit during the premium paying term only, or for the full
term. The sum is capped between Rs 30,000 and Rs 50,000. A majority of the insurers offer
policies under the non-medical scheme and automatic acceptance if size of the group is more
than 200 members. It is possible to offer an automatic cover facility after two years of
premium payment. A policy bond is given and administration is done through a micro-
insurance agent. Some Insurers may exclude the risk coverage for the first 45 days. Hence,

2. International Journal of Social Science & Interdisciplinary Research________________________________ ISSN 2277-3630
IJSSIR, Vol. 5 (3), MARCH (2016), pp. 72-77
Online available at indianresearchjournals.com
73
there is a need to understand the micro insurance portfolio of public and private sectors
insurance companies in India.
Review of Literature
Basanta k. Sahu (2010) has highlighted that the timing of this study is strategic when
there is a renewed policy interest in micro insurance sector in India to achieve variety of
Socio-economic goals. Some important liberal regulatory policy initiatives have been
introduced recently to improve outreach and growth of the sector. Insurers are now permitted
to deal in both life and non-life products. Micro insurance industry in India poised for-faster
growth. But at the micro level, situations. Specific to different groups and regions looks
different with different perspectives of stakeholders.
Devandasan.N and Somil Nagpal (2007) has concluded that many micro health
insurance schemes have not only achieved good enrolment levels amongst their target
population, indicating the existence of demand but from a policy marker’s perspective, these
schemes have also improved access to health services for the poor. In scenario where ill-
health has been major cause for improvement, the value of such financial protection does not
need to be reemphasized.
Shenbagam and Kannappan (2015) has reveals that micro insurance can also be
instrument to spread communal security in the environment of providing safety to people in
developing countries and paying to shortage improvement. The people are well aware
towards the micro insurance products among the urban and rural people. Agents played a
main in creating alterness as well as the major influence for attractive micro insurance policy.
Virginia Tan and Allen et.al., (2012) has concluded that micro insurance has the
potential to make a massive difference in people’s lives helping to keep them above the
poverty line and by cushioning them against disaster, allowing them to focus on a better
future. Micro insurance has started to become a practicable option for low income households
to protect against adverse events and as a tool for governments to pursue economic and
industrial development.
Sanjeev kumar srivastaw (2013) has concluded that poverty alleviation is still a
major problem of India. Micro insurance is one of the tools that seek to achieve that
objective micro insurance tries to extend social protection to poor people as well as providing
financial services to them, however, the diverse nature of India rural economy, suitable
mechanism must be developed to minimize the transaction cost and improvement in
insurance density.
Paramasivan.C and Rajaram.S (2015) has concluded that Insurance is one of the
complexes and time consist financial services with unique nature of features. Period of the
insurance policies varies from one year to unlimited time particularly in micro insurance.
Death claim is one of the major parts of the insurance products. In a normal death claim, that
is if the life assured has died after two years of the commencement of risk, the insurer, on
being intimated about the death of the policyholder, calls for the age proof, if not earlier

3. International Journal of Social Science & Interdisciplinary Research________________________________ ISSN 2277-3630
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74
admitted, the original policy document and proof of death. The proof of death can be a
certificate from the municipal authorities under which cremation has taken place or other
local body like death registry.
Paramasivan.C and Rajaram.S (2015) has concluded that micro insurance is part of
financial inclusion which provides financial services to the poor and the unreached people in
the country. Micro insurance consists of wide scope and it will reach huge segment of the
people. In India, micro insurances are not much popular like the life and general insurance
because of the lack of awareness among the people. Hence, there should be a awareness on
micro insurance among the people particularly those who belong to weaker section of the
society.
Private Insurance Companies Micro insurance Products (List of Policies)
S.No Micro Insurance Products of
Private Insurance Companies
Individual Categories
Micro Insurance Products of
Private Insurance Companies
Group Categories
1 Gramin Suraksha Credit Plus
2 Bima Dhan Sanchay ING Sarak Suraksha
3 Bima Suraksha Super Grameen Shakti
4 DFL Pranerica Sarva Suraksha Grameen Super Suraksha
5 Gramin Bima Kalyan Yojana Shri Sahay-SP
6 Sarvagrameen Bachat Yojana Shri Sahay-AP
7 Sarva Janna Suraksha SUD life Paraspar Suraksha
Plan
8 Grameen Bima -
9 Tata AIG life Ayushman Yojana -
10 Tata AIG life Navakalyan Yojana -
11 Tata AIG life sampoom Bima yojana -
12 Tata AIG Sumangal Bima Yojana -
Source: irda annual report
Public Insurance Companies Micro insurance Products (List of Policies)
Source: irda annual report
Portfolio of Micro insurance
The micro insurance sector, the Insurance Regulatory and Development Authority has
proposed to allow broadening of the product portfolio and distribution network, by allowing
more entities to sell the products. It has proposed to allow cooperative banks, regional rural
banks, primary agricultural co-operative societies and individuals (shopkeepers, medical store
owners, and petrol pump owners, public telephone operators) to act as micro insurance
agents. Noting the sector’s business performance was far below the potential, the regulator
S.No Micro insurance products
of Public Insurance
Companies
Individual Categories
Micro insurance products
of Public Insurance
Companies Products
Group categories
1 Jeevan Madhur Janashree Bima Yojana
2 Jeevan Mangal Aam Aadmi Bima
Yojana
3 Jeevan Deep -

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has decided to revisit the regulations. The Micro Insurance Regulations prescribe a
framework within which insurers can offer affordable products in this regard. It has asked
insurers to consider diversifying the portfolio of micro insurance products by including
savings-linked and health cover features.
Table No:1
New Business under Micro Insurance Portfolio Individual wise from 2009-2014
Public Sector Insurance Company
Source: irda annual report 2009-2014
Table No. 1 Shows that the micro insurance portfolio individual wise public sector insurance
company 2009-2014.
Maximum of the year 2009-10, Rs.14982.51 Lakhs mobilished as premium from
1985145 policies. The followed by Rs.12305.8 Lakhs mobilished as premium from 2951235
policies.2010-11. As regards 2011-2012, Rs.10603.49 Lakhs mobilished as premium from
3826783 policies. The followed by 2012-2013 Rs.9949.05 Lakhs mobilished premium from
4340235 policies. The minimum of the year 2013-2014 Rs.8635.77 Lakhs mobilished as
premium from 2205820 policies.
As on the whole, Rs 56476.62 Lakhs were mobilished as premium from 15309218
policies under the categories of individual by public sector insurance company during the
year 2009-10 to 2013-2014.
Table No:2
New Business under Micro Insurance Portfolio group wise from 2009-2014
Public Sector Insurance Company
Year No. of
Schemes
Premimum
(Rs.lakhs)
No. of Lives
covered
2009-10 5190 22869.72 14946927
2010-11 5446 13803.67 13275464
2011-12 5461 9444349 9831.63
2012-13 5325 13223872 21045.76
2013-14 5292 12581.45 11887303
Total 26714 275937.04 40140571.39
source: irda annual report 2009-2014
Table No:2 Show that the micro insurance portfolio group categories public sector insurance
company 2009-2014.
In the year 2009-10, 5190 Schemes were implemented which mobilized a premium of
Rs.22869.72 lakhs and lives covered to 14946927. The followed by 2010-2011, 5446
Year No.of
Polices
Premium
Rs. (Lakhs)
2009-10 1985145 14982.51
2010-11 2951235 12305.8
2011-12 3826783 10603.49
2012-13 4340235 9949.05
2013-14 2205820 8635.77
Total 15309218 56476.62

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schemes were implemented which mobilized a premium of Rs.13803.67 lakhs and lives
covered to 13275464, as regard 2011-12, 5461 schemes were implemented which mobilized a
premium of Rs.9444349 lakhs and lives covered to 9831.63,as regard 2012-13, 5325 schemes
were implemented which mobilized a premium 13223872, followed by 2013-14, 5292
schemes were implemented which mobilized a premium 12581.45 lakhs and lives covered
11887303.
As on the whole 26714 implemented schemes were implemented were of which,
mobilized a premium of Rs.275937.04 lakhs and lives covered to 40140571.39.
Table:3
New Business under Micro Insurance Portfolio Individual wise from 2009-2014
Private Sector Insurance Company
Year No.of
Polices
Premium
Rs.(Lakhs)
2009-10 998809 839.78
2010-11 699733 735.09
2011-12 793660 964.22
2012-13 695904 1018.54
2013-14 561339 929.29
Total 3749445 4486.92
Source: irda annual report 2009-2014
Table No.3 Shows that the micro insurance portfolio individual wise public sector insurance
company 2009-2014.
In the year 2009-10, Rs.839.78 Lakhs mobilished as premium from 998809 policies.
The minimum of the year 2010-2011 Rs.735.09 Lakhs mobilished as premium from 699733
policies. As regards 2011-2012, Rs.964.22 Lakhs mobilished as premium from 793660
policies. The maximum of the year 2012-2013 Rs.1018.54 Lakhs mobilished premium from
695904 policies. The followed by 2013-2014 Rs.929.29 Lakhs mobilished as premium from
561339 policies.
As on whole, Rs 3749445 Lakhs were mobilished as premium from 4486.92 policies
under the categories of individual wise by public sector insurance company during the year
2009-10 to 2013-2014.
Table:4
New Business under Micro Insurance Portfolio group wise from 2009-2014
Private Sector Insurance Company
Year No.of
Schemes
Premium
Rs.(lakhs)
No. of
Lives covered
2009-10 17 1472.09 1895143
2010-11 23 1719.14 1983537
2011-12 112 750555 1150.67
2012-13 151 757450 756.89
2013-14 164 1595.23 1291741
Total 467 1512791.46 5172328.56
Source: irda annual report
Table No:4 Show that the micro insurance portfolio group categories public sector insurance
company 2009-2014.

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In the year 2009-10, 17schemes were implemented which mobilized a premium of
Rs.1472.09 lakhs and lives covered to 1895143 by private sector insurance company. The
followed by 2010-2011, 23 schemes were implemented which mobilized a premium of
Rs.1719.14 lakhs and lives covered to 1983537, as regard 2011-12,112schemes were
implemented which mobilized a premium of Rs.750555 lakhs and lives covered to 1150.67,as
regard 2012-13,151 schemes were implemented which mobilized a premium 756.89,
followed by 2013-14, 164 schemes were implemented which mobilized a premium 1595.23
lakhs and lives covered 1291741.
As on the whole 467 schemes were implemented of which, mobilized a premium of
Rs.1512791.46 lakhs and lives covered to 5172328.56.
Conclusion
Micro insurance is one of the innovative and social security schemes which help to
empower the rural poor in the country. Progress of the micro insurance is not a significant
level due to low premium and low agent commission. In India, only 40% of the people
covered under insurance segments the remaining people are unreached from insurance
facilities. Therefore there is a need to extent the micro insurance products to the unreached
and marginalized people through simplified and systematic produces. Insurance is not a
savings based scheme it is a social security scheme. Hence, the government should
concentrate with a special attention to reach the micro insurance products to all the people in
the country.
Reference
Basanta K. Sahu (2010) “Micro insurance in India:Outreach and efficiency” Bankers
institute of rural development lucknow,pp.1-157
Devadasan and Somil Nagpal (2007) “Perspectives and Prospects in micro health
insruance” irda journal Vol.,12, pp.12-17
Paramasivan.C and Rajaram. S (2015) “Death claim under Micro insurance Portfolio”
Kaav international journal of economics,commerce and business management. Vol.2
pp.38-45
Paramasivan.C and Rajaram.S (2015) “An Overview of Micro Insurance Industries in
Inida” International journal of multidisciplinary educational research. Vol.4 pp. 115-129
Sanjeev kumar Srivastaw (2013) “Micro insurance: a Spectacular view on rural
development in India”, Indian Journal of Applied Research., Vol.3, pp.96-97
Shenbagam and kannappan (2015) “A study on customers perception towards the micro
insurance products with special reference to Erode District” PARIPEX Indian Journal
Research, Vol.4., pp.320-322
Virginia Tan and Allen (2012) “Micro insurance” Advocates for International Development
lawyers Eradicating Poverty Working Paper pp.1-4
Website
www.irda.annual report.com
www.licinida.in
www.microcapital.org
www.microsave.org
www.lio.org.in