Vol: 1, Issue: 4 2011

Page: 85-94

Micro-Insurance: A Vehicle for Inclusive Development

Dr. K.Anjaneyulu

Poverty is not just a state of deprivation but has latent vulnerability. Micro-insurance should, therefore, provide greater economic and psychological security to the poor as it reduces exposure to multiple risks and cushions the impact of a disaster. There is an overwhelming demand for social protection among the poor. Micro-insurance in conjunction with micro savings and micro-credit could, therefore, go a long way in keeping this segment away from the poverty trap and would truly be an integral component of financial inclusion. The paper provides an overview of the micro-insurance scene in India and suggests strategies for its further extension so as to promote inclusive development. The billions of poor people who do not have a formal way of coping with risk must respond positively to the efforts of providers and regulators in accepting a culture of insurance and its capability to provide financial freedom, security and well-being and also accomplish inclusive development.