Rs60,000 crore: loss from life insurance in just two years
Indian households are financially savvy, but they distrust the financial sector
Imagine that there is a very crowded city, bursting at the seams. A state-of-the-art satellite city comes up and is ready for settlement, but remains largely empty. All the shiny new infrastructure is wasted because the citizens seem to want to stay in the polluted, congested space they currently occupy. The local authority wants people to crossover and keeps thinking of new ways to incentivize this. Tax breaks, cheaper medical facilities, better schools.... But no go. The citizens are blamed for being foolish. But the truth is that the only thing the local authority is unable to resolve is the extremely high crime rate in the new city area. Roads have no rules, gangs of criminals roam around, plunder and kill at will. The authorities turn a blind eye saying that this tribe of criminals has traditionally robbed and killed for livelihood and, therefore, they must be left alone since their livelihood is at stake. The local authority does not tell the real reason—that it gets a cut from the criminals. Perversely it uses some of this money to give further incentives to people to move! The new city remains empty, and every year during the annual budget, experts pontificate on how to incentivize the silly citizens to move. But the smart guys don’t. They prefer the safety of the known problems.