Hyderabad: The protection gap for Indian households has grown significantly in the last few years, according to a recent study. The difference between the resources needed and the resources already available for dependents to maintain their living standards, if the prime working member is no longer able to support the family, is considered to be protection gap.
According to the study, the protection gap for the entire population of India is estimated at $8,555 billion (approximately Rs 563 lakh crore) in 2014. According to the Asia Pacific mortality protection gap by Swiss Re, a typical Indian household has only eight per cent of savings and insurance in place, leaving a huge mortality protection gap of about 92 per cent.
Reiterating this view, Tata AIA Life Insurance chief marketing officer Soumyajit Patnaik said, “Many reports have pointed towards India’s startling mortality protection gap, which in turn means that there there is an enormous need for long-term savings and protection solutions in the country. Keeping these mind we have launched three products to address this growing gap.”
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