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Insurance cover is critical for individuals to safeguard themselves against life’s risks. One of the key jobs of insurance is shielding the economic soundness of small and medium sized endeavors. Insurance cares, and comforts, provides security, protection, safety, prosperity, success, good fortune, and has its own edge in the society. People are frequently dealing with various forms of debt and at the same time they lack sufficient assets for retirement and face unexpected risks that could result in a major financial setback. Though India is currently undergoing a recession like phase, there is confidence that its economy will overcome this temporary setback.
Need for managing financial risks has given birth to a number of micro credits, micro insurance products and many other financial services that are micro in nature. Financial inclusion refers to people’s access to a vast range of financial products and services at affordable cost. Over the years, micro finance as a financial service innovation is fast emerging as an important method of bettering the lot of the poor and the downtrodden. It can be defined as provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi-urban or urban areas for enabling them to raise their income levels and improve living standards. Technology and internet have given ample scope for rural population to adapt to the changing new technology landscape. For more than a decade the penetration level of insurance is stagnant, except for a few intermittent small spikes. In the article, we explore the role insurance plays in bringing financial inclusion and wellbeing in India.