A report by Insurance Regulatory Authority of India (IRAI) has found that average Indian households are paying Rs2,979 in premium for the same coverage, while the average consumer pays Rs4,898.
This means that the average family of five is paying an average of Rs5,000 per month for their basic coverage.
The data also reveals that average income is also increasing in India.
The report found that the median income of the average household is Rs20,800 while the median household income of individuals is Rs33,400.
The average household income is more than three times higher than the average income of households in India in 2011-12.
The average Indian household spends Rs5.76 crore per year for insurance.
In 2017-18, average Indian families spent Rs4.8 crore on premiums, and the average expenditure for the average individual is Rs7,500.
In 2017-2018, the average premium for an individual with a household income over Rs2 lakh was Rs10,900.
This is higher than last year when the average annual premium for a household with a family income of Rs2.25 lakh was around Rs5 a month.
For more, read: Insurance company seeks clarification on ‘India Premium’ on social media article The report by IRAI was released on Tuesday.
It found that while the population of India grew by 11.8 per cent in the last decade, the number of people in the insurance industry has been declining.
According to the IRAIs annual report, the country has more than 30 insurance companies and the industry employs around 1.4 lakh people.
The number of Indian households with coverage in the Indian Insurance Corporation (IIC) has more then doubled over the last five years to 5 million households, the report said.
IIC is a private sector body that provides basic coverage to the population, and it was the number one insurer in the country in 2017-06.
India’s insurance sector is expected to expand by 7.7 per cent this financial year, as the country is expected increase its insurance coverage to about 1.7 billion people, according to the government’s insurance plan, 2017-2020: