Role of Micro Insurance in the Rural Development of India

Micro insurance is the tool that protects rural as well as poor urban people by offering low cost insurance to mitigate their risk. It aims at building mechanisms for insuring the poor against various risks. With the opening up of the economy and as per the regulation of IRDA private insurance companies also tries to exploit the rural market. But still LIC is a major player so far as the employment generation is concerned as well as offering of social security and life risk. In this paper an attempt has been made to evaluate the present position of micro insurance in India and its role in respect of risk mitigation and economic development.