Finance Minister P Chidambaram today called for extending the scope of general insurance to bring smaller towns and new areas within its ambit. He also called for increasing awareness and persuading people to join life and non-life insurance streams.

Inaugurating a non-life insurance awareness campaign in New Delhi, Mr Chidambaram said penetration and density of general insurance is quite low in the country as compared to its potential. Mr Chidambaram said development of insurance industry is essential for economic growth of the country as it is a great mobiliser of savings.

Stating that India ranks 52nd in terms of non-life insurance penetration, he pitched for improving the status of the country in view of its poor standing even in comparison to China, Brazil and Russia. The Minister, however, pointed out that the number of general insurance products have increased over the years.

The Finance Minister highlighted the need to bring small and marginalized farmers under the fold of crop insurance to insulate them from bad effects of natural calamities. He mentioned that only about hundred lakh hectare of cropped area out of total 1400 lakh hectare is covered under crop insurance schemes. Mr Chidambaram said development of insurance industry is essential for economic growth of the country it is a great mobiliser of savings.

AIR correspondent reports, the non-life insurance awareness campaign is first of its kind beginning tomorrow and will continue for the next two months. The pan-India multi-media campaign focuses on the basic benefits of insurance. The second phase of the campaign is scheduled from September to October 2013.