Rural households in India have shown an increase in the take-up of insurance coverage, with the proportion of households with at least one-member insured surging from 25.5% 2016-17 to 80.3% in 2021-22.
Comparing agricultural and non-agricultural households in the rural sector, 86% of agricultural households reported having some form of insurance in 2021-22, a significant increase from 26% in 2016-17.
The data are shown in the “All India Rural Financial Inclusion Survey” report for 2021-22, published last month by the National Bank for Agriculture and Rural Development (Nabard), a development financial institution that promotes agriculture and the rural sector. The survey covered 100,000 rural households in all 28 states and the Union Territories of Jammu & Kashmir and Ladakh. This latest survey is the second to be carried out after a study carried out in 2016-17.
The survey findings also show that among different branches of insurance, vehicle insurance was the most prevalent, with 55% of households covered. Life insurance coverage extended to 24% of households.
In addition, the percentage of households with at least one member receiving any form of pension (such as old age, family, retirement, or disability) increased from 18.9% in 2016-17 to 23.5% in 2021-22. Overall, 54% of households with at least one member over 60 years old reported receiving it.
For agricultural households, vehicle insurance grew the most from 5% in 2016-17 to 60% in 2021-22. Health insurance rose from 5% to 21%, accident insurance from 2% to 13%, and life insurance from 17% to 26% in the same period.