The Government has asked the Public Sector Insurance Companies to reorganise their branch network and open offices in smaller towns of the country without any further delay.

Addressing the Chairpersons of PSU Insurance companies in New Delhi yesterday, Finance Minister Pranab Mukherjee said, this will help in increasing insurance penetration in unserved areas.

He highlighted that the per-capita income has grown over the years and a large number of people in smaller towns are saving and are looking for insurance products.

Mr. Mukherjee also urged the insurers to immediately take the e-governance route and ensure that all policies, both new and renewal are available online. He said, this will help in tapping the growing segment of insurable population who is IT savvy. He asked insurance companies to appoint business correspondents as insurance agents to tap the huge potential in rural areas.