BIMARU STATES — Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh —have become the first choice for insurance companies of the country.
Executive Director (distribution) of Max India New York Life Rajesh Sood said as per the assessment of insurance companies it was in these States that maximum number policies could still be sold.
Sood said if the insurance sector continued with the current pace of progress, the country would disposes become number one as far as insurance market was concerned in the coming decade leaving behind America.
Sood said as per the studies, probabilities of market expansion were much more in eastern and northern states of the country as compared to western and southern states. Of which the four BIMARU states have the most potential.
He said the way UP was progressing in the leather and information and technology sector, the other industries and sector would certainly get the much-needed fillip. The case was similar with Bihar and Madhya Pradesh. He said of late Rajasthan has come out of its orthodox culture and was progressing.
Sood said till date approximately only 1.5 per cent people in these states had opted for insurance cover while about 25 crore people were still uncovered. He said as per their estimate if only 10 per cent of the uninsured population accepted various schemes it would be a major achievement for them.
He said after the arrival of insurance company the development rate has seen a great increase. From 10 to 12 per cent earlier, the rate of increase has touched 30 per cent.