The United Nations Declaration of Human Rights 1948 provides that “Everyone has a right to a standard of living adequate for the wellbeing of himself and his family, including food, clothing, housing and medical care and necessary social services and the right to security in the event of unemployment, sickness, disability, widowhood or other lack of livelihood in circumstances beyond his control.”
When the earning member expires, the family’s income ceases leaving direct effect on family’s economic condition, unless other arrangements come into being to reinstate the situation. Life insurance provides such an alternate arrangement. Absence of Life Insurance can push another family into the lower section of society. Poor people cost the nation by way of subsidies and doles and so on. Lower strata also cost by way of larger population growth, poor education. Life Insurance tends to reduce such cost. Thus Life Insurance business is complimentary to the government’s efforts in Social Management.
Article 41 of Indian Constitution about social security requires state, within the limits of its economic capacity and development, to make effective provisions for securing right to work, education and assistance in case of unemployment. Parts of these obligations are met through the mechanism of Life Insurance.
Directives from regulator (IRDA) and law obligates insurance companies to extend benefits to weaker sections of the society.
Economic Development & Insurance
Investments are necessary for economic developments. Insurance company plays a major role in mobilizing savings mainly from middle and lower income groups which is channeled into investment for economic growth.
When the earning member expires, the family’s income ceases leaving direct effect on family’s economic condition, unless other arrangements come into being to reinstate the situation. Life insurance provides such an alternate arrangement. Absence of Life Insurance can push another family into the lower section of society. Poor people cost the nation by way of subsidies and doles and so on. Lower strata also cost by way of larger population growth, poor education. Life Insurance tends to reduce such cost. Thus Life Insurance business is complimentary to the government’s efforts in Social Management.
Article 41 of Indian Constitution about social security requires state, within the limits of its economic capacity and development, to make effective provisions for securing right to work, education and assistance in case of unemployment. Parts of these obligations are met through the mechanism of Life Insurance.
Directives from regulator (IRDA) and law obligates insurance companies to extend benefits to weaker sections of the society.
Economic Development & Insurance
Investments are necessary for economic developments. Insurance company plays a major role in mobilizing savings mainly from middle and lower income groups which is channeled into investment for economic growth.
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