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National Insurance Awareness Day has renewed focus on India's low insurance penetration, with industry stakeholders calling for greater public awareness and wider adoption of insurance products. IFFCO-TOKIO General Insurance Company Ltd said insurance remains underutilised despite relatively affordable premiums and continued efforts by insurers, regulators and financial institutions to improve coverage. According to the company, only around 15% of losses in India are currently covered by insurance, while more than half of the country's vehicles remain uninsured. Industry experts believe improving insurance awareness is essential to strengthening household financial resilience amid rising healthcare costs, climate-related risks and economic uncertainties.
National Insurance Awareness Day has brought renewed attention to the need for wider insurance coverage in India, with industry participants highlighting the country's low insurance penetration despite growing financial risks and relatively affordable premiums. As households face increasing healthcare expenses, climate-related disruptions and economic uncertainties, insurers have reiterated the importance of insurance as a financial risk management tool.
Subrata Mondal, Managing Director and Chief Executive Officer of IFFCO-TOKIO General Insurance Company Ltd, said insurance plays a critical role in providing financial protection against unforeseen events and helping individuals and families manage losses arising from emergencies.
According to Mondal, insurance penetration across India remains low across multiple product categories, with many consumers continuing to purchase insurance only after being encouraged by agents or financial institutions rather than through voluntary adoption. He noted that despite insurance premiums being among the lowest in the Asia-Pacific region, overall coverage remains limited.
The company stated that only around 15% of losses in India are currently protected through insurance policies. It also highlighted significant gaps in motor insurance coverage, noting that more than half of the vehicles operating on Indian roads remain uninsured despite the financial risks associated with accidents and other unforeseen events.
Mondal said improving public understanding of insurance products is necessary to encourage households to obtain adequate financial protection against unexpected losses, including medical emergencies and property-related risks. He added that wider insurance adoption would help reduce the financial burden arising from unforeseen incidents and improve long-term financial security.
Industry experts also emphasised that increasing insurance awareness will be an important component of India's broader financial inclusion agenda. They noted that as household assets, healthcare expenditure and exposure to climate-related events continue to increase, insurance is becoming an increasingly important financial safeguard for individuals and businesses.
According to the industry, improving insurance penetration requires sustained efforts from insurers, regulators, financial institutions and distribution partners to enhance consumer awareness and simplify access to insurance products. Stakeholders believe greater understanding of the benefits of insurance could encourage more individuals to adopt policies proactively rather than only after experiencing financial setbacks.
The observations come at a time when policymakers and financial sector participants are working towards expanding access to financial services across the country. Industry experts maintain that higher insurance penetration would strengthen household financial resilience by protecting lives, assets and long-term savings while reducing the economic impact of unforeseen events on families.
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