Chiefs of non-life insurance companies met Finance Minister P Chidambaram on Monday, and discussed measures required to increase general insurance penetration.

General insurance is languishing at around 0.7 per cent of gross domestic product, much down form the global average level of 1.5 per cent to 4 per cent.

Following the meeting, Financial Services Secretary D. K. Mittal said, "Our (General Insurance) penetration rate is low. How do we improve it to the standard average level of 1.5 per cent to 4 per cent? The roadmap has to be prepared by all of us."

Chiefs of non-life insurance companies suggested that the government should increase IT exemption on mediclaim policies from existing Rs 15,000 to Rs 1 lakh.

Chiefs of non-life insurance companies also urged Chidambaram to pursue changes in law to raise the foreign investment limit from 26 per cent to 49 per cent.

Chidambaram met industry's representatives in the backdrop of deteriorating financial situation of the $11-billion general insurance industry.

In the last two financial years, 2010-11 and 2011-12, 21 out of the 24 general insurance companies were in the red. However in the April-July this year, the general insurance industry enjoyed a jump of 18.69 per cent in premium income to Rs 22,162 crore.