LARGER THE RISK LEVEL, HIGHER THE GROWTH OF INSURANCE INDUSTRY IN BALOCHISTAN: Banks can play a key role in the growth of insurance industry in the province.

Byline: SYED FAZL-E-HAIDER

Larger the risk level, higher the growth of insurance industry. The risk perception - risks to life, assets and public and private properties - has been higher and widely prevalent in Balochistan where the incidents of terror and attacks on public and private properties have witnessed a phenomenal growth over the past many years. The reason is the poor law and order situation in the province, which is facing an insurgency-like situation. The other reasons include weak financial system, nominal industrial growth and inconsistent policies, which have so far hampered the growth of insurance industry in Balochistan. Insurance business generally grows on risk perception in a society.

Ship-breaking is the province's biggest industry at Gaddani with over 5,000 employees. The workers at the ship breaking yard work in permanent danger. On board gasses cause fires and explosions. The incidents take place frequently due to fires and explosion, suffocation and inhaling CO2 and the steel plates and other material, which may hit the workers while falling off the ships. As a result of frequent accidents at the shipbreaking yard, many workers have lost their lives. The local work force should be offered a monetary safety in the shape of insurance pay out. Free life insurance benefit may be extended by the employer to the poor workers. In this regard, the premium cost should be borne by the employer. The amount of insurance in case of death, compensation or permanent disability should already be fixed by the employer in accordance with the intensity of the damage caused by the accident.

Though Balochistan has vast potential in insurance sector, yet the sector could not play its due role in the local economy. Balochistan is the country'spoorest province. Agriculture, the mainstay of local economy, employs 67 percent of province's total work force. The local work force and their dependents live in miserable socio-economic conditions. The insurance pay out can provide them some sort of monetary shieldand lessen their sufferings to an extent.

Lack of awareness about the insurance business has been the biggest the constraint in the growth and development of insurance industry in Balochistan. There is need to highlight the importance of life insurance, which provides income and security for dependents after the death of the life-insured person.

State Life is the country's largest life insurance organization with its largest market...

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