23 March 2026 | Daily Current Affairs

Insurance Penetration: Meaning, Density and Underinsurance Issue in India for UPSC

Context

Insurance sector is often assessed using insurance penetration and insurance density, but these indicators can give a partial picture of actual financial protection.

Insurance Penetration

• Insurance premium as a percentage of GDP
• Shows size of insurance sector in the economy

Insurance Density

• Per capita premium (average premium per person)
• Shows average spending on insurance

What These Indicators Miss

• They measure premium collected, not risk coverage
• Higher values do not necessarily mean better protection

Core Concept

• Insurance = Risk protection, not just policy ownership
• Real measure should be → adequacy of sum assured

Key Issues in India

• Underinsurance
• Many people are insured but coverage amount is too low

• Insurance as investment
• Focus on returns/savings, not protection

• Misleading growth indicators
• Rising penetration/density ≠ improved financial security

• Low awareness of risk
• People underestimate required coverage

Data and Its Meaning

• Claims settled: ~1 crore annually
• Total payout: ~₹3.3 lakh crore
• Average payout: ~₹3.3 lakh per claim
• Claim settlement ratio: ~97%

Interpretation

• Even though claims are settled efficiently,
• ₹3–4 lakh is too small to replace long-term income
→ Shows inadequate insurance cover

Insurance Penetration
Insurance Penetration

Cabinet Committee on Security: Role, Members and Functions for UPSC

Context

Due to West Asia conflict, the Cabinet Committee on Security (CCS) reviewed its impact on energy, fertilizers, and supply chains and discussed diversification + coordinated government response.

Cabinet Committee on Security (CCS)

• Chair: Prime Minister
• Members: Defence | Home | Finance | External Affairs

Core Role

• National security | Defence | Strategic issues

Cabinet Committees – Core Idea

• Small groups of ministers for quick decision-making
• Formed under Transaction of Business Rules
• Created/restructured by PM

Key Cabinet Committees

• CCS → Security → Chair: PM
• CCEA (Cabinet Committee on Economic Affairs) → Economy → Chair: PM
• CCPA (Cabinet Committee on Political Affairs) → Political issues → Chair: PM
• ACC (Appointments Committee of the Cabinet) → Top appointments → Chair: PM (+ Home Minister)
• CCPA-Parliamentary Affairs → Legislative business → Chair: Usually Defence Minister

Cabinet Committee on Security
Cabinet Committee on Security

Lokpal: Functions, Structure and Institutional Challenges in India for UPSC

Context

A Parliamentary Standing Committee has sought details on why the inquiry and prosecution wings of the Lokpal are not fully operational, even after the law has been in force for years; at present, prosecution work is largely handled by the CBI.

Lokpal – Basics

• Law: Lokpal and Lokayuktas Act, 2013 → in force (2014) → functional (2019)
• Nature: Statutory anti-corruption ombudsman at Union level

Composition and Eligibility

• Structure: Chairperson + up to 8 Members
• Reservation: 50% judicial + 50% from SC/ST/OBC/Women/Minorities
• Eligibility: Minimum age 45 years + integrity + expertise (law, governance, vigilance, finance)

Appointment

• Appointing Authority: President
• Selection Committee: PM + Speaker + LoP + CJI (or nominee) + Eminent Jurist

Jurisdiction

Covers corruption cases against:
PM (with restrictions) | Ministers | MPs | Central Govt officials (Group A–D) | PSUs | Autonomous bodies | NGOs receiving govt/foreign funds

Lokpal
Lokpal
PYQ – 2025, Ans – A

Compulsory Voting: Constitutional Validity, Supreme Court View and Issues for UPSC

Context

• Ahead of Assembly Elections (April–May 2026), the issue of compulsory voting came up in a Supreme Court-related discussion.
• Debate: Should India make voting mandatory to improve low voter turnout?

Constitutional Position of Voting

Article 326 → Provides universal adult suffrage (18+ citizens can vote)
• Voting is not a Fundamental Right

It is a Statutory Right under:
Representation of the People Act, 1950 → voter registration
• Representation of the People Act, 1951 → right to vote
Supreme Court view: Voting = statutory right, not fundamental

Is Compulsory Voting Valid?

Constitutional Concern

• May violate Article 19(1)(a) → Freedom of expression
• Includes right to vote AND right not to vote

Committees / Reports Mentioned

  1. Dinesh Goswami Committee (1990)
    • Did not support compulsory voting
    • Reason: Practical difficulties in implementation
  2. Law Commission (255th Report, 2015)
    • Compulsory voting may increase turnout (~7%)
    • But not desirable or feasible in India
    • Emphasised awareness over coercion

Comparative Perspective

• Countries like Australia, Brazil, Argentina → compulsory voting with fines
• But enforcement is strict and costly, not suitable for India

Issues with Compulsory Voting

• Enforcement challenges (huge population)
• Risk of penalising poor/migrant voters
• Denial of services/fines → undemocratic & harsh
• May lead to forced or uninformed voting

Way Forward (Key Takeaways)

• Focus on voluntary participation
• Awareness campaigns (especially digital/social media)

Better access to polling:
• Transport facilities
• Holiday enforcement
• Explore remote voting technologies (for migrants)

Compulsory Voting
Compulsory Voting
PYQ – 2017, Ans – C

PM-KUSUM Scheme: Objectives, Components and AgriPV Integration for UPSC

Full Form: Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan

• Launched: 2019
• Ministry: Ministry of New and Renewable Energy (MNRE)

Objective

• Provide solar energy for farmers
• Reduce diesel/grid dependence
• Increase farmer income

Components

• A: Decentralised solar plants (up to 2 MW)
• B: Standalone solar pumps
• C: Solarisation of grid-connected pumps

Key Idea

• Farmers can use solar power + sell surplus electricity

PM-KUSUM 2.0

• Upgraded version under discussion/recent policy push
• Focus on scaling up solarisation
• Includes Agri-Photovoltaics (AgriPV) integration
• Aim: move from pilot → large-scale implementation

Agri-Photovoltaics: Solar–Agriculture Integration, Benefits and Challenges for UPSC

Context

• In Budget 2026–27, allocation for PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) increased to about ₹5,000 crore.
• It reflects focus on decentralised solar energy for farmers.
• This raises the issue of land use conflict between solar expansion and agriculture → leading to discussion on Agri-Photovoltaics (AgriPV).

Agri-Photovoltaics (AgriPV)

• Definition: Simultaneous use of same land for agriculture and solar energy generation.
• Mechanism: Solar panels installed above or between crops, allowing cultivation below.

Why AgriPV is Important

• Addresses land scarcity for solar projects
• Enables dual use of land
• Supports farmer income diversification
• Aligns with clean energy targets

Key Benefits

• Additional income from electricity
• Reduced water loss due to shading
• Protection of crops from extreme weather
• Efficient land utilisation

Major Challenges

• High capital cost
• Lack of regulatory clarity
• Absence of design standards
• Risk of lower crop yield if poorly designed

Status in India

• Around 50 pilot projects
• Still at a nascent stage

Agri-Photovoltaics
Agri-Photovoltaics
PYQ – 2018, Ans – D
PYQ – 2022, Ans – B
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