See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/376379990

Issue 38 Available online @ www

Preprint · December 2023

CITATIONS

4 authors, including:

Rajaram Subbiah
St.Joseph University Dimapur Nagaland
24 PUBLICATIONS 12 CITATIONS

SEE PROFILE

All content following this page was uploaded by Rajaram Subbiah on 10 December 2023.

The user has requested enhancement of the downloaded file.

 JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

Available online @ www.iaraindia.com

RESEARCH EXPLORER-A Blind Review & Refereed Quarterly International Journal
ISSN: 2250-1940 (P) 2349-1647 (O)
Impact Factor: 3.655(CIF), 2.78(IRJIF), 2.77(NAAS)
Volume XI, Issue 38
July - December 2023
Formally UGC Approved Journal (63185), © Author

TREND AND PROGRESS OF MICRO INSURANCE IN SOUTH ZONE

Dr. S. RAJARAM
Associate Professor, Department of Commerce, St. Joseph University, Nagaland

Abstract
Micro insurance is one of the innovative products for rural people because it covers
the risk. Rural population has to face many risks and hardships. Therefore, there is a need
of understanding the significance and impact of micro insurance towards empowering
rural population in the study area. In this regard, the presented studies discuss the trend
and progress of the micro insurance in south zone, with respect to Jeevan Madhur, Jeevan
Mangal and Bhakaya Lakshmi of Life Insurance Corporation of India.
Keywords: Micro Insurance, Trend and progress, South zone, Poor people, Public and private micro
insurance.

Introduction name of Jeevan Madhur. A simple saving

Micro insurance is one major part of related life insurance plan for low income
the manufacturing industries sector. Its persons was launched in 2006. On the deth of
protected rural people and industrial labour the policy holder, death benefit amount equal
risk are bearing part of life. India has to the total premiums payable during the entire
Monopoly Life Insurance Company there term of the policy will be paid along with
functioning three micro insurance schemes bonus if any micro insurance products easily
Jeevan Madhu, Jevvan Mangal and Bhakaya reach the rural poor people.
Lakshmi. This schemes main motive of Seema shokeen (2017) Micro
unorganized sectors people risk cover, but Life Insurance is an instrument which can be used
insurance agent not willing to promote this to provide protection to low income segment
scheme, reason is low premium cost of the of the society against various uncertainties at
schemes but they are got low commission. low cost. The main objective of micro
Literature Review insurance is the development of the service at
Paramasivan and Rajaram (2015) very low price through micro finance
noted that micro insurance is one of the institution. It an effective tool which can be
schemes of the life insurance corporation of used to eliminate poverty of the country
India which introduced through Jeevan mangal moreover government is also contributing in
micro insurance policy to reach the unreached the development of micro insurance by
people. Jeevan mangal micro insurance south providing various subsidies to make the micro
zone performing significantly with attractive insurance products less costly so that poor
policies people can afford it easily. But micro
Paramasivan and Rajaram (2016) insurance is still an emerging concept in India
analysed that micro insurance is a special kind and it is facing challenges for its development
of insurance, which helps to attract and meet as people are not average about it and there are
the needs of the unreached people with an no proper channels for its distribution.
affordable cost. Life Insurance Corporation Chrishina Maria roy and Elvina
introduced a micro insurance policy in the Varghese (2019) It’s reveals that India is

Research Explorer 59 Volume XI, Issue 38

 JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

considered to be an economically vulnerable Micro insurance in India is a new concept and

country in the past, but with the introduction in the real sense is yet to be tested for its
of micro insurance, India has become more suitability to the needs of target segment.
stable among the lower income groups of the Spreading awareness among this segment of
country. Micro insurance is one where the insurable population and capacity building of
lower income groups of the society has to only delivery organisation are major challengers. In
pay a certain amount of premium which is in several cases social factors or guiding agencies
relevance to their risk level and affordability. like insurance agents, employer’s friends and
Gowsya Sheik and Raja Babu (2018) relatives influence the prospective buyers to
he analysis that the growth of micro insurance invest in the micro insurance policy.
has been increasing in the past decade. In Deepak Kumar Adhana and Mayank
recent years, this concept has gained Saxena (2017) Micro insurance is optimistic,
remarkable progress in our country. The there is a huge scope for developing the
developing country like India micro insurance segment in the country. Small firms should
in an economic instrument in supporting the make a compulsory contribution from the
sustainable development of the poor and employer to actively take and participate in an
reducing the inequality. Micro insurance is insurance cover. The real problem lies with the
protection for the low income population. In corporate because they are still not ready to
India 70% of the population resides in the rural give importance to the rural market. There is a
areas but they do not have small insurance need of well laid out strategy to target rural
coverage. Therefore, micro insurance is an market at corporate level. If micro insurance
enormous opportunity to get social protection schemes are rightly implemented, it could
to low income people especially those in the bring sea change in the living standard of rural
informal economy who tend to be underserved population living below poverty line.
by mainstream commercial and social Statement of Problem
insurance schemes Micro insurance products in rural
Dilip Bania and Sankar Thappa areas must be visualized by insurers not only
(2018) Micro insurance is a tool for as a commercial activity of theirs but also as
investment, savings and as a measure of social one that is imposed with a sense of corporate
security to the poor. It increases the livelihood social responsibility. Insurance selling should
of the poor where they can eat well, have good not merely be regarded as a program to sell
health since they would not have to save as insurance covers but must be regarded as a
much for emergencies. The numbers of micro movement to inculcate the habit of buying
insurance agents are in growing trend both in insurance to protect the assets and health of the
LIC of India and private insurers too. families to cash in on the growing levels of
Srijanani Devarakonda (2018) He rural incomes in the future. Micro insurance
said micro insurance is an important refers to the insurance of the low income
instrument that ensures and increases social people. Today, the promise of providing social
protection for the poor and destitute. Micro security to all is not being fulfilled in India.
insurance is no longer about merely pushing Only 20 per cent of the world population
out products. To create real impact there is a enjoys adequate social protection.
need for work to develop inclusive markets Paradoxically the poor, who are the most in
that includes creating the appropriate enabling need of social protection, are the excluded
and protective policy and regulatory ones
environment and developing the necessary Objectives
supporting infrastructure and capacity to 1. To analysis the trend and progress of
facilitate offering a wide range of affordable micro insurance in south zone
products and services to diverse client 2. To examine private and public sector
segments. It is a truth that the world’s poor micro insurance companies in south zone
will not achieve lasting prosperity without Research Methodology
access to insurance. The present study is descriptive and
Ram Neegamegam (2017) it observed analytical in nature by using primary data.
that the potential of micro insurance is very Primary data were collected with the help of
high for a developing country like India where structured interview schedules which were
a major portion lives below poverty line. distributed to the respondents of the micro

Research Explorer 60 Volume XI, Issue 38

 JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

insurance policy holders. Stratified random analysed with the advanced and appropriate
sampling techniques were applied to select the statistical tools.
sample respondents. Collected data were
Result and Discussion
Table -1: Mean differences in selected variables between private and public sector companies
Std. Std. Error
company N Mean
Deviation Mean
private 5 897.3840 111.60352 49.91061
Individual Live Insurance premium (in lakhs)
public 5 11295.3240 2448.50555 1095.00497
private 5 749889.00 161909.059 72407.933
Number of policy holders(in lakhs)
public 5 3061843.60 1015345.680 454076.392
Individual Policy Holders Death claim paid (in private 5 1038.6940 1430.72088 639.83783
lakhs) public 5 3470.9240 4819.15139 2155.19002
private 5 93.40 69.716 31.178
Number of schemes
public 5 5342.80 112.768 50.432
Number of individual Policy holders' live private 5 1335685.20 594005.340 265647.264
Insurance covered public 5 12555583.00 2049984.154 916780.784
private 5 1251.80 491.620 219.859
Number of Micro insurance Agents
public 5 12561.00 4241.648 1896.923
Group policy holders' Death Insurance Claim private 5 1533.2820 1434.60689 641.57571
Paid (in lakhs) public 5 51644.7620 49700.32889 22226.66278
Number of Group Policy Holders live private 5 3388.80 1868.558 835.645
Insurance Covered public 5 78928.60 48606.604 21737.534
Group Live insurance premium Covered(in private 5 1338.8600 388.07418 173.55205
lakhs) public 5 16026.4460 5639.33480 2521.98719
private 5 95.3660 32.25110 14.42313
Number of New Policies Issued(in lakhs)
public 5 365.8920 16.14474 7.22015
private 5 1200.80 884.659 395.631
Number of Corporate Agents
public 5 280.20 138.938 62.135
private 5 1152726.20 222617.563 99557.601
Number of Individual Agents
public 5 1277400.80 95955.662 42912.677
private 5 81491.5640 4557.26543 2038.07106
Group Life Insurance Premium(in Crore)
public 5 207637.1740 18471.99339 8260.92658
private 5 7521.40 1044.442 467.088
State wise Distribution of Life Insurers
public 5 3688.20 651.473 291.347

Table-2: Independent Samples t-test for Equality of Means

t-test for Equality of Means
Variables 95% Confidence Interval of
Sig. (2- Mean Std. Error
t df the Difference
tailed) Difference Difference
Lower Upper
Individual Live Insurance
-9.486 8 .000 -10397.9 1096.141 -12925.6 -7870.2
premium (in lakhs)
Number of policy
-5.028 8 .001 -231195 459813.30 -337228 -125162.0
holders(in lakhs)
Individual Policy Holders
Death claim paid (in -1.082 8 .311 -2432.2 2248.16 -7616.5 2752.0
lakhs)
-
Number of schemes 8 .000 -5249.4 59.29 -5386.1 -5112.6
88.536
Number of individual
-
Policy holders' live 8 .000 -11219897.8 954492.26 -13420960.9 -9018834.7
11.755
Insurance covered
Number of Micro
-5.922 8 .000 -11309.2 1909.62 -15712.7 -6905.65
insurance Agents

Research Explorer 61 Volume XI, Issue 38

 JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

Group policy holders'

Death Insurance Claim -2.254 8 .054 -50111.4 22235.92 -101387.6 1164.6
Paid (in lakhs)
Number of Group Policy
Holders live Insurance -3.473 8 .008 -75539.8 21753.59 -125703.6 -25375.9
Covered
Group Live insurance
premium Covered(in -5.810 8 .000 -14687.5 2527.95 -20517.0 -8858.1
lakhs)
Number of New Policies -
8 .000 -270.5 16.12 -307.7 -233.3
Issued(in lakhs) 16.772
Number of Corporate
2.299 8 .051 920.6 400.48 -2.9 1844.1
Agents
Number of Individual
-1.150 8 .283 -124674.6 108412.23 -374673.6 125324.4
Agents
Group Life Insurance -
8 .000 -126145.6 8508.62 -145766.5 -106524.6
Premium(in Crore) 14.826
State wise Distribution of
6.963 8 .000 3833.2 550.50 2563.7 5102.6
Life Insurers
Ho1: There is no difference in mean Individual Ho6: There is no difference mean in number of
Live Insurance premiumbetween private and micro insurance agents between private and
public sector companies public sector companies
The study shows that there is significant Similarly, there is significant mean
differences in mean premium income differences in number of micro insurance
between private and public sector companies agents between private and public sector
since P=0.000 is less than ∂=5%. companies since P=0.000 is less than ∂=5%.
Ho2: There is no difference in mean number of Ho7: There is no difference in mean number of
policy holders between private and public policy holders between private and public
sector companies sector companies
Similarly, the study highlights that there is The P-value=0.000 is less than ∂=5%.
statistically significant differences in mean Hence, the null hypothesis is rejected stating
number of policy holders between private that there is statistically significant difference
and public sector companies since P=0.001 is between private and public sector companies
less than ∂=5%. in terms of number of policy holders.
Ho3: There is no mean difference in individual Ho8: There is no difference in mean group
death claim payment between private and death insurance claim paidbetween private
public sector companies and public sector companies
Since P=0.311 is higher than ∂=5%, the null The P-value=0.54 is higher than ∂=5%.
hypothesis is accepted stating that there is no Hence, the null hypothesis is accepted stating
statistically significant difference between that there is no statistically significant
private and public sector companies in terms difference between private and public sector
of individual death claim payments. companies in terms of group death claim
Ho4: There is no mean difference in number of payments.
schemes between private and public sector Ho9: There is no mean difference in group live
companies insurance coverage between private and
The study shows that there is significant public sector companies
mean differences in number of schemes Since P=0.008 is less than ∂=5%, the null
between private and public sector companies hypothesis is rejected stating that there is
since P=0.000 is less than ∂=5%. statistically significant difference between
Ho5: There is no mean difference in live private and public sector companies in terms
insurance covered between private and of group live insurance coverage.
public sector companies Ho10: There is no mean difference in group
The study shows that there is significant live insurance premium coverage between
mean differences in live insurance covered private and public sector companies
between private and public sector companies Since P=0.000 is less than ∂=5%, the null
since P=0.000 is less than ∂=5%. hypothesis is rejected stating that there is

Research Explorer 62 Volume XI, Issue 38

 JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

statistically significant difference between In order to study the trends and

private and public sector companies in terms progresses of micro insurance, the study
of group live insurance premium coverage. employed a linear regression model. Ten
Ho11: There is no mean difference in number explanatory variables have been entered in to
of new policies issued between private and the model and only few have shown
public sector companies significant association with the outcome
The P-value=0.008 is less than ∂=5%. variable while majority failed to explain the
Hence, the null hypothesis is rejected stating dependent variable due to co linearity problem
that there is statistically significant difference and being removed from the model.
between private and public sector companies Table-3: Model Summary- Individual LI
in terms of number of new policies issued. Premium
Ho12: There is no mean difference in number Std. Error
R Adjusted R
of corporate agents between private and Model R of the
Square Square
public sector companies Estimate
The P-value=0.051 is higher than ∂=5%. 1 .971a .943 .936 1447.82
Hence, the null hypothesis is accepted stating
that there is no statistically significant a. Predictors: (Constant), Number of individual
difference between private and public sector Policy holders' life Insurance covered
companies in terms of number of agents. The analysis shows that the adjusted
Ho13: There is no mean difference in number R2 is found to be 93.6%. This indicates that
of individual agents between private and the dependent variable which is individual life
public sector companies insurance premium is exclusively
Since the P-value=0.283 is higher than explained/dictated by the independent
∂=5%, the null hypothesis is thus accepted variable” which is number of individual policy
stating that there is no statistically significant holders’ life insurance coverage” see Table-3.
difference between private and public sector Table-4 Analysis of Variance (ANOVAa)-
companies in terms of number of individual Individual LI Premium
agents. Sum of d Mean Sig
Model F
Ho14: There is no mean difference in group Squares f Square .
Regress 27755383 27755383 132.4 .00
life insurance premium between private and 1
ion 6.49 6.49 08 0b
public sector companies Residua 16769593. 2096199.1
The study highlights that the null hypothesis 1 8
l 28 6
is rejected since the P-value=0.000 is less 29432342
than ∂=5% stating that there is statistically Total 9
9.78
significant differences between private and a. Dependent Variable: Individual Live Insurance
public sector insurance companies in terms premium (in lakhs)
of group life insurance premium. b. Predictors: (Constant), Number of individual
Ho15: There is no mean difference in state Policy holders' live Insurance covered
wise distribution of life insurers between The analysis of variance (ANOVA)
private and public sector companies shows that there is statistically significant
The P-value=0.000 is less than ∂=5%. association between individual life insurance
Hence, the null hypothesis is rejected stating premium and number of individual policy
that there is statistically significant difference holders’ live insurance coverage. It also shows
between private and public sector companies that the fitness of the model is good and
in terms of state wise distribution of life statistically significant since its P-value= 0.000
insurers. is less than ∂=5% (see table-4).
Trends and Progress of Micro Insurance
Table-5 Regression Model -Individual Life Insurance Premium Analysis
Standardized 95% Confidence Collinearity
Correlations
Coefficients Interval for B Statistics
Model t Sig.
Lower Upper Zero-
Beta Partial Part Tolerance VIF
Bound Bound order
-
1 (Constant) -.342 .741 1406.89
1897.55

Research Explorer 63 Volume XI, Issue 38

 JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

Number of
individual
Policy holders' .971 11.50 .000 .001 .001 .971 .971 .971 1.000 1.000
live Insurance
covered
a.Dependent Variable: Individual Life Insurance Premium (in lakhs),Coefficientsa
In order to study the effects of micro (progress) in the individual life insurance
insurance, a regression model has been premium (see table-5).
applied. The analysis shows that from among Table-6: Model Summary-Group LI Premium
the 10 variables entered in to the model, only Std. Error
R Adjusted R
one variable is found to be having statistically Model R of the
Square Square
significant effect on the dependent variable. Estimate
The remaining 9 variables are removed due to 2 .989a .979 .973 11196.93
a. Predictors: : (Constant), Number of Micro
multi-collinearity problem from the model.
insurance Agents, Number of individual Policy
According to this study, individual life holders' live Insurance covered
insurance premium (company premium) is Table-6 shows that 97.3% of the
highly dictated by number of individual policy dependent variable(group life insurance
holders’ life insurance coverage. This study premium) is explained by two independent
indicates that there is positive and statistically variables, namely number of micro insurance
significant association between premium and agents and number of individual policy
number of individual life insurance coverage holders’ life insurance coverage. Besides,
since the P-value=0.000 is less than ∂=0.05. table-7 indicates that the goodness of fit of the
Besides, the study shows that a unit increase in model is statistically significant at P-value of
the number of individual life insurance 0.000.
coverage results in 97.1 per cent rise
Table-7: Analysis of Variance (ANOVAa)-Group LI Premium
Model Sum of Squares df Mean Square F Sig.
Regression 40352121379.79 2 20176060689.89 160.93 .000b
2 Residual 877598758.61 7 125371251.23
Total 41229720138.40 9
a. Dependent Variable: Group Life Insurance Premium(in Crore)
b. Predictors: (Constant), Number of Micro insurance Agents, Number of individual Policy holders'
live Insurance covered

Table-8: Regression Model - Group Life Insurance Premium Analysis

Standardized 95.0% Confidence Collinearity
Correlations
Coefficients Interval for B Statistics
Model t Sig.
Lower Upper Zero-
Beta Partial Part Tolerance VIF
Bound Bound order
(Constant) 12.31 .000 55445.79 81797.19
Number of
Micro insurance .569 5.58 .001 3.36 8.30 .957 .904 .308 .292 3.42
Agents
2 Number of
individual
Policy holders' .461 4.52 .003 .002 .008 .940 .863 .249 .292 3.42
live Insurance
covered
a. Dependent Variable: Group Life Insurance Premium(in Crore);Coefficientsa
Similar analysis has been made to individual policy holders' live insurance
observe the effect of the explanatory variable coverage (with P-value is 0.003) have
on the outcome variable. Out of ten variables statistically significant effect on group life
entered into the model, only two of them, insurance premium. The effect is positive in
namely number of micro insurance agents both cases. On one hand, a unit increase in the
(with P-value is 0.001) and number of number of micro insurance agents result in an

Research Explorer 64 Volume XI, Issue 38

 JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

increase in group life insurance premium by over the period of 2009/10 through 2012/13
56.9 per cent. On the other hand, a unit and raised at a faster rate after 2012/13 till
increase in number of individual policy 2013/14(see fig.9). However, the average
holders’ life insurance coverage increases number of policy issued has eventually
group life insurance premium by 46.1 per cent. declined all over the five years period (see
In general, the study shows that that the fig.10). On top of that, the average number of
progress of micro insurance is dependent on individual agents has declined at slower rate
premium paid by groups and individuals which over the last five years periods (see fig. 11).
in turn is highly dictated by the However, the analysis shows that the average
aforementioned two explanatory variables. number of corporate agents has drastically
The average individual policy holders’ declined over the subsequent five years (see
life insurance premium is declining over time fig.12).
for both public and privates insurance Conclusion
companies (See fig.1). Moreover, figure-2 The micro insurance scheme is helpful to rural
shows that the average group policy holders’ poor people and unorganized sectors labours
life insurance premium is drastically declining so Indian government takes incentive for these
from 12,100.91lahks in the year 2009/10 to micro insurance schemes to promote for
rupees of 5,490.15lakhs in 2011/12. It development of our nation.
eventually increased to 10,901.33 lakhs from
year 2011/12 to 2012/13. Finally it declined
again to 7088.34lakhs from year 2012/13 to
2013/14. The average number of policy
holders has increased to 2,518,070 lakhs from
1,491,977 between the period of 2009/10 and
2012and13. Then this figure has drastically
fallen down to 1,383,580 lakhs from 2012/13
to 2013/14(see fig.3). The present study also
shows that the average individual policy
holders’ death claim payment has slightly
increased from 412.74 lakhs to 1,140.85 lakhs
in the period 2009/10 and 2012/13. However,
it has drastically raised to 7,815.50 lakhs with
in the period of 2012/13 to 2013/14 (see fig.4).
The analysis so far made also highlights that
the average state wise distribution of life
insurers has declined from the period 2009/10
to 2012/13 and then slightly raised between
the period 2012/2013 and 2013/14(see fig.5).
Similar analysis shows that the mean number
of schemes has slightly increased between the
period 2009/10 and 2011/12 and then declined
between the period 2011/12 to 2013/14 (see
fig.6).
The study also shows that the average
number of individual policy holders’ life
insurance coverage has declined from the
period 2009/10 to 2011/12, then it has
increased between 2011/12 and 2012/13 and
finally came down from 2012/13 to
2013/14(see fig.7).But, the average number of
micro insurance agents has progressively
increasing from 2009/10 through 2013/14 all
over the five years(see fig.8).Similarly, the
study shows that group policy holders’ death
insurance claim payment has slightly increased

Research Explorer 65 Volume XI, Issue 38

JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

Research Explorer 66 Volume XI, Issue 38

JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

Trends of Jeevan Madhur Micro insurance

Policy holders

Research Explorer 67 Volume XI, Issue 38

 JULY - DECEMBER 2023 ISSN: 2250-1940 (P), 2349-1647(O)

References 6. Paramasivan and Rajaram, (2016) Jeevan

1. Christine Maria Roy and Elvina Varghese Mangal Micro Insurance in India – A
(2019) Micro insurance policies with Performance Approach in South Zone,
special reference to life and health International Journal of Trend in
insurance in India. International Journal Research and Development. Vol.3., Issue
of business and management Invention. 2., pp.320-323
Vol. 8., Issue No.1., pp.83-88. 7. Paramasivan. C (2011), Customer
2. Deepakumar Adhana and Mayank saxena Satisfaction through Information
(2017) Micro insurance in India: A Technology in commercial banks, Journal
powerful tool to empower poor. Asia of Commerce and Management Thought,
pacific journal of research in business Vol.2, Issue 4, October, pp 509-522.
management. Vol.8., Issue 7., pp.88-107 8. Ram Neelamegam (2017) Social factors
3. Dilip Bania and Sankar (2018) Life micro as determinations of investment in micro
insurance in Assam- A case study. insurance: A study with reference to
International Journal of Management kollam district, kerala. ICTACT journal
studies vol.5 Issue 3., pp.44-52 on management studies Vol.3, Issue 3,
4. Gowsya Sheik and Raja Babu (2018) pp.543-546
Micro insurance mechanism and 9. Seema Shokeen (2017) Micro insurance
opportunities for the sustainable in India, International Journal of
development of India economy. Engineering applied science and
International Journal of mechanical technology Vol.2 Issue 3 pp.20-25
engineering and technology Vol.9., Issue 10. Srijanani devarakonda (2018) Micro
2., pp.857-865 insurance in India: an analysis of the
5. Paramasivan and Rajaram, (2015) Jeevan perceptions problems and opportunities.
Madhur Micro Insurance in south zone- A International Journal of Trade and Policy.
birds eye view study, SELP Journal of DOI:10.28.2833
Social Science. Vol.6., Issue 26, pp.10-15

Research Explorer 68 Volume XI, Issue 38

View publication stats