Page 522 - ES 2020-21_Volume-1-2 [28-01-21]

Monetary Management and Financial Intermediation 149

Figure 18: Insurance density in 2019 (in US $)

Source: SwissRe, Sigma various issues
Note: # Data relates to financial year

4.53 During 2019-20, the gross direct premium of Non-Life insurers was ` 1.89 lakh crore,
as against ` 1.69 lakh crore in 2018-19, registering a growth of 11.45 per cent. Within non-life
category, motor and health segments primarily are the main contributors to industry to report
this growth. Life insurance industry recorded a premium income of ` 5.73 lakh crore in 2019-20,
as against ` 5.08 lakh crore in the previous financial year, registering a growth of 12.75 per cent.
While renewal premium accounted for 54.75 per cent of the total premium received by the life
insurers, new business contributed the remaining 45.25 per cent.

4.54 Some important regulatory measures undertaken due to COVID-19 are as follows:
• KYC process has been simplified with the permission granted for 54 insurers to undertake
Paperless KYC process through Aadhaar Authentication Services of UIDAI.

• Guidelines were issued on introduction of short term health insurance policies
providing coverage for COVID-19 disease which are valid upto March 31,2021. As
per the guidelines 1) All life, general and health insurers allowed to offer COVID – 19
specific short-term health insurance policies, 2) Policy term of minimum of 3 months
and maximum of 11 months 3) life insurers are permitted to issue benefit-based policies
only, General and Health insurers can issue both indemnity based and benefit based
4) Insurers shall comply with pricing norms specifies under 2016 HI regulations and
guidelines issued thereunder 5) Waiting period shall not exceed 15 days, no separate
add-ons are permitted. Lifelong renewability, migration and portability not applicable.

• Guidelines were issued for Corona Rakshak policy which is a standard benefit-based
policy and Corona Kavach Policy, a standard health policy which will be offered on
indemnity basis and insurers had been asked to launch the product from July 10, 2020.