Factors Behind Taxi Drivers Not Having Life Insurance & Impact of Awareness On The Same

Abstract

 The Insurance sector in India is on a significant growth path because of the introduction of a good range of insurance products and services. With 24 companies offering life insurances to Indians and presence of an independent regulatory authority, IRDA, the sector is booming. But still, the current percentage of Indians having life insurance is abysmal, because of lack of awareness among the mass population. A significant part of this uninsured category are the taxi drivers who belong to the most vulnerable category of workers. The percentage of drivers having life insurance in India is abysmal, whereas the vehicle they drive is covered under general insurance. This research paper is an attempt to study and understand the reasons behind the low life insurance penetration among the Indian Cab drivers and specific to the Pune region, Maharashtra. The cab and taxi drivers of the region were surveyed for the research to know the exact reason. There were a few reasons behind the low count of the policyholders. The research revealed that the drivers were not majorly not aware of what life insurance is and the way it functions. Lack of awareness came out to be the prime factor. Though, after having sufficient information and being aware of its benefits, majority of the respondents were willing to have a life insurance plan.