Insurance sector can propel economic growth: Roy

Mumbai, Feb 22 (UNI) The insurance sector has the potential to sustain the country's economic growth, according to SBI Life Insurance managing director and CEO U S Roy.

Speaking to UNI here today, Mr Roy pointed out that globally, pension and life insurance companies are biggest investors in the area of infrastructure development.

The insurance sector, to some extent, can enable investments in infrastructure development to sustain the Indian economic growth, he said adding that a well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development.

Mr Roy pointed out that health expenditure, compounded by high medical costs and life-style diseases, is growing rapidly. Yet, only one per cent of the health expenditure in the country is on account of insurance. There is ample scope to encourage individuals to buy health insurance by increasing the exemption limit from the existing Rs 15,000, Mr Roy stated.

These measure will serve as an incentive and encourage customers to take policies, thereby driving the existing low insurance penetration in India, he added.

UNI AR MAZ SKB1843