1Research scholar Prist University Thanjavoor, Tamilnadu
2Emeritus Professor Dept. of Management Studies V.H.N.S.N College Virudunagar-626001-Tamilnadu
Online published on 8 August, 2018.
The developing countries like India face the enormous task of finding sufficient capital in their development efforts. Most of these countries find it difficult to get out of the-vicious circle of poverty of low income, low insurance coverage, low investment, low employment, etc. with high capital output ratio. The life of an individual is exposed to a variety of risks of which many cannot be insured even though different types of products are offered by general and life insurance companies to cover these risks. There is lack of knowledge about these products among the rural poor and most of the individuals especially women are not aware about the fact and benefits of insuring their lives. Since the beginning of planning, the emphasis was on insurance and investment capital formation as the primary instrument of economic growth and increase in national income. In order to have production as per target, capital formation was considered the crucial determination and capital formation had to be supported by appropriate volume of savings.
