Aviva Life Insurance CEO Asit Rath explains how insurance builds financial security and supports India’s development through protection, savings and long-term investments
OdishaPlus Bureau
Insurance plays a crucial role not only in safeguarding individual families but also in contributing to national development, said Asit Rath, Managing Director and CEO of Aviva Life Insurance (India), during an interaction with OdishaPlus.
Highlighting the importance of early financial planning, Rath said insurance should be the foundation of every individual’s financial journey. He noted that a person’s income represents their “financial worth,” which their family depends upon, making adequate life cover essential from the beginning of one’s career.
Emphasising the role of Pure Term Insurance, Rath said individuals should ideally have a protection cover amounting to 10 to 20 times their annual income, depending on their career path. He cautioned that the absence of life insurance poses serious risks for dependents who rely on that income for their livelihood.
Explaining the broader framework of insurance, Rath outlined three key pillars—protection, long-term savings for life milestones, and retirement planning. While protection ensures immediate financial security for families, long-duration insurance products help fund major future needs such as higher education or entrepreneurial ventures. On retirement, he pointed out that increasing life expectancy means individuals may spend two to three decades without regular income, making disciplined savings during working years critical.
Rath also spoke about government-led initiatives aimed at expanding insurance coverage. The upcoming Bima Sugam platform, backed by the Government of India and IRDAI, is designed to simplify insurance purchase through a unified digital system. Complementing this effort is the Bima Vahak initiative, which will deploy trained women at the grassroots level to distribute affordable, bundled insurance products covering life, health, and property, with premiums as low as ₹150–₹200 per month.
Linking insurance to nation building, Rath explained that premiums collected by insurers are invested in State and Central Government bonds and securities. These funds are utilised for infrastructure development, including roads, power projects, and airports. He noted that policyholders indirectly contribute to national growth through these long-term investments.
Looking ahead, Rath said trust and simplicity will be key to making insurance a household necessity in India. He stressed the need for transparent products and a strong network of trained and certified agents to bridge awareness gaps and ensure wider financial protection.
Watch the full interview here: https://youtu.be/B8P0qpW5I3