India’s self-employed: Bridging the insurance gap with tech-enabled solutions
Subscribe to enjoy similar stories. India is home to over 300 million self-employed individuals, accounting for nearly 50% of the workforce. This diverse group includes gig workers, small business owners, freelancers, and independent professionals like doctors, lawyers, and architects, among others.
Read this | Your rights in life and health insurance claims: Unpacking the moratorium clause Self-employment is the largest source of employment in India, playing a crucial role in driving the economy. The government, through various initiatives, is focusing on fostering self-reliance. Despite their immense contributions, self-employed individuals face significant challenges in securing financial protection, particularly in accessing adequate term life insurance coverage.
Unlike salaried employees who often benefit from employer-sponsored insurance plans or regular incomes, self-employed individuals encounter several hurdles in obtaining term life insurance. Key challenges include: Unstable income: Many self-employed individuals experience fluctuating earnings. For instance, a kirana store owner, lawyer, or small workshop operator may see varied monthly incomes based on business conditions.
Similarly, chartered accountants (CAs) might earn significantly more during tax-filing seasons and less during off-peak months. Such irregularity complicates insurers’ ability to assess eligibility. Lack of formal documentation: Life insurers typically rely on formal financial documents like salary slips or income tax returns to determine a person’s income stream.
Read more on livemint.com
