The journey towards widespread insurance coverage begins with informed individuals and families. India’s insurance penetration rate for 2023-24 is anticipated to be 3.8%, with life insurance penetration expected to be 2.9%. These figures underscore the pressing need for heightened awareness and education about insurance
Sanjeev Mantri, MD & CEO, ICICI Lombard General Insurance Company
On National Insurance Awareness Day, we celebrate the indispensable role that insurance plays in securing peace of mind and our financial well-being. While we have made commendable progress, there remains vast untapped potential for increasing insurance penetration in India.
The transformative initiatives by IRDAI have ushered in an era of enhanced transparency and robust consumer protection. At ICICI Lombard, we are committed to the regulator’s vision of ‘Insurance For All by 2047,’ making it imperative that we also engage more deeply with communities to simplify the understanding of insurance products.
Financial literacy stands as a cornerstone of our efforts, empowering consumers with the knowledge to make informed decisions about their insurance needs. We are dedicated to harnessing technology and innovation to make insurance more accessible and comprehensible, ensuring that every individual can safeguard their future against unforeseen risks.Our vision is to foster a resilient society where insurance is not merely a product but an integral part of holistic financial planning.
Rakesh Jain, CEO, Reliance General Insurance
Determining the appropriate amount of insurance depends on several factors, including age, financial obligations, and future goals. Younger individuals should prioritize long-term growth and income protection coverage. Since age significantly impacts your premiums, it’s beneficial to invest in health insurance as early as possible.
Starting early allows you to manage premiums more easily and adjust your plan as you age.
For instance, when you get your first job, consider making health insurance your top investment priority. Most health insurance plans offer a cumulative bonus for each claim-free year, which can increase your coverage at no additional cost. Younger people, generally being healthier, are less likely to file claims and can benefit from these bonuses.
Anand Roy, MD & CEO, Star Health Insurance
Star Health and Allied Insurance Company, India’s largest retail health insurance company, continues to drive a host of insurance awareness and educative initiatives in Andhra Pradesh, Madhya Pradesh and Haryana. These initiatives are part of Star Health Insurance’s commitment to ensure that every individual has access to quality healthcare.
The initiative is being conducted in over 470 villages and towns across 51 districts of Andhra Pradesh, Madhya Pradesh and Haryana.
We plans to reach out to over 2,50,000 individuals across the 3 states Star Health Insurance has been conducting awareness activities across the country highlighting the importance of health insurance.
In FY24, we conducted roadshows across Andhra Pradesh, Tamil Nadu, Karnataka, Jharkhand, Bihar and Odisha covering 134 districts and over 980 villages, with a reach of over 4,20,000 individuals.
As the leader in standalone health insurer in India, we are committed to increase insurance awareness as we firmly believe that access to healthcare is the fundamental right. In line with IRDAI’s vision of “Insurance for all by 2047”, we are focussed on building – ‘Awareness, Availability and Accessibility’.
We are mindful of the low insurance penetration rate in India due to lack of awareness, specially across the rural regions. We are continuously taking initiatives to deepen our commitment to make health insurance accessible across Bharat.
Casparus Kromhout MD & CEO,Shriram Life Insurance .
Knowing the importance of insurance gives individuals the power to protect their families’ futures and keep their finances on track.
-Safeguarding the Assets and Taking Care of Your Loved Ones: Insurance is crucial not only for personal coverage but also for safeguarding your valuable assets like your home, car, and business from damage, theft, or liabilities. Additionally, life insurance acts as a safety net for your loved ones, providing financial protection and peace of mind. It ensures they can maintain their lifestyle and achieve important life goals, such as funding your children’s education, even in your absence. This comprehensive protection eases the financial burden and ensures stability during life’s uncertainties.
-Financial Perks: Many insurance products offer tax benefits and can even be used as investment tools. This means that while you’re enjoying the protection insurance provides, you can also grow your wealth and make your money work for you.
By promoting insurance awareness, Shriram Life Insurance aims to arm our customers with the knowledge they need to make well-informed decisions. Ultimately, our goal is to help Indian families build stronger, more resilient financial futures.
Debunking Common Myths
Life insurance is not just a benefit that comes into play after death; it is a comprehensive tool for managing risks associated with both premature death and extended life expectancy.
Life insurance can help you manage various financial aspects throughout your life, such as retirement expenses, medical costs, and building wealth. It ensures financial independence and offers protection against future financial burdens. That’s why it’s a smart move to purchase life insurance when you’re young, single, and healthy. By doing so, you can enjoy lower premiums and have more favorable coverage options. This not only safeguards your financial future but also provides security for potential future commitments and health expenses.
Contrary to popular belief, life insurance doesn’t have to be expensive. Premiums can be adjusted to fit different budgets, and options like term insurance offer substantial coverage at affordable rates. You can buy policies for yourself, your spouse, or even your children.
Joint policies and child plans provide comprehensive coverage for your loved ones too. Claim settlements have become hassle-free thanks to digitized processes, as long as the information provided by the customer is accurate and transparent.
Prasun Sikdar, MD & CEO, ManipalCigna Health Insurance.
“On this National Insurance Awareness Day, we at ManipalCigna Health Insurance emphasize the vital role health insurance plays in securing a healthier future for all. Health insurance is a living benefit product; so just as mutual funds are essential for financial growth, health insurance is crucial to access easy and lifetime quality healthcare without the burden of unforeseen medical expenses.
So, everyone should consider the benefits of health insurance and make it a priority.
The insurance regulator, IRDAI is also taking commendable steps towards achieving ‘Insurance for All’ by 2047. These efforts are pivotal in making health insurance more affordable, accessible, and available to every citizen, ensuring a healthier and financially secure future for our nation.
Our mission at ManipalCigna perfectly aligns with the goal of ‘Insurance for All’, and we strive to empower individuals and families with comprehensive health insurance, ensuring their health, well-being and peace of mind.”
Anil PM, Head of Legal, Compliance, and FPU at Bajaj Allianz Life,
In a country like India, where many families lack sufficient financial protection, it is crucial to understand not just the importance of life insurance but also the need for adequate coverage. While it’s promising that nearly 70% of families have some form of life insurance, the key question remains: is the coverage adequate?
Underinsurance can leave loved ones vulnerable, and the entire insurance ecosystem, led by the regulator, is undertaking numerous measures to ensure that everyone understands the need for the right cover. This Insurance Awareness Day is an opportune time to highlight this critical issue. The general rule of thumb is to secure life cover that is 10 times your annual income.
Pankaj Gupta, Managing Director & CEO of Pramerica Life Insurance
On this National Insurance Awareness Day, it’s imperative to recognize the crucial role that awareness plays in increasing insurance penetration in India.
The journey towards widespread insurance coverage begins with informed individuals and families. India’s insurance penetration rate for 2023-24 is anticipated to be 3.8%, with life insurance penetration expected to be 2.9%. These figures underscore the pressing need for heightened awareness and education about insurance.
IRDAI has set a visionary goal of achieving ‘Insurance for All’ by 2047, and enhancing accessibility is at the heart of this mission. One of the most promising initiatives is the upcoming launch of Bima Sugam – designed to revolutionize the insurance landscape by simplifying the buying process, fostering transparency and empowering customers to make informed decisions. This platform is a testament to IRDAI’s commitment to customer-centric solutions.
Another significant step is the Bima Vahak initiative, a women-led distribution network aimed at bridging the insurance gap in far flung areas. By empowering women at the mass level, Bima Vahak is poised to make a substantial impact on insurance outreach.
Raising awareness is not just about spreading information; it’s about sparking conversations within families about the importance of life insurance. These discussions will lead to informed decisions and actions, ultimately ensuring that more families are protected and financially secure.
I am proud to be part of this transformative journey and celebrate the significant strides we are making in the insurance sector.
Srinidhi Shama Rao, Chief Strategy officer Bandhan Life Insurance:
When buying life insurance, customers have three important things to consider:
Assess Your Coverage Needs: Calculate how much financial support your family would need in your absence. This includes factors like daily expenses, future financial goals (like education or marriage expenses for your children), outstanding debts, and other liabilities.
Understand Policy Features: Read and understand the policy terms, including coverage duration, premium payments, exclusions, and any additional benefits or riders offered (like critical illness or disability riders). Ensure the policy aligns with your financial goals and provides adequate coverage.
Compare Plans: Research and compare different insurance plans to find one that best suits your needs. Consider factors such as premiums, coverage amount, flexibility in premium payments, claim settlement ratio of the insurer, and customer reviews.
The IRDAI constantly updates its guidelines to maintain transparency, allowing you sufficient time to review and comprehend policy terms. Customers should always discuss their policies in detail with the insurance agents / providers so as to be able to select a policy that covers their family’s financial needs effectively.
Dhirendra Mahyavanshi, Co-Founder and CEO of Turtlemint
India, being one of the fastest-growing insurance markets, still has a relatively low insurance penetration rate of 4% of its GDP, leaving a sizable gap. This gap is largely due to a lack of awareness and accessibility of insurance and its critical role in financial stability during unforeseen incidents.
The IRDAI is making commendable efforts to increase awareness and accessibility to insurance for the uninsured and underinsured segments, taking insurance to the last mile.
On this National Insurance Awareness Day, the industry must spread awareness and work towards closing this gap. Harnessing the power of technology to make insurance more accessible is crucial for all players in the ecosystem.
By streamlining processes, utilizing big data for personalised coverage, and providing on-demand options, insurtech is creating a future where obtaining the right insurance is possible right from your phone.
This National Insurance Day, let’s embrace innovation to deliver the peace of mind and protection of insurance to every doorstep.”