Every year on 28th June, we celebrate National Insurance Awareness Day. This year (2025) definitely stands out. With the number of incidents happening around us, one thing has been made very clear – the need for insurance in our lives.
The plane crash accident, stampedes, and climate change are prime examples of the need for insurance in today’s world. The world is progressing, and so should your insurance policies. This National Insurance Awareness Day, ensure you revise your policies and get them updated as per your requirements. This day serves as a reminder to understand insurance, revamp it according to your needs and purchase one if you don’t have it.
The Origin and Purpose of the National Insurance Awareness Day
While the exact origin of the day is unknown, it is widely acknowledged as an initiative started in the United States, likely created by the insurance professionals there to promote insurance literacy and policy renewal awareness. In India, this day serves as a valuable moment to reflect on the growing need for insurance awareness, especially with rising health costs, uncertain roads, and evolving financial needs. At its core, it’s not about selling insurance, but it’s about understanding it. Because when people are better informed, they’re better protected. The purpose of National Insurance Awareness Day is:
- Revisit their current insurance coverage.
- Understand the types of insurance available (health, life, vehicle, etc.)
- Ensure they're adequately protected against risks.
- Recognise the role of insurance in long-term financial planning.
Importance of Insurance in Modern India
Modern-day India has a plethora of problems that require the help of insurance to remain stable. Here’s why having insurance is crucial in India.
Growing Inflation
Medical Complications
Uncertainties on the Road
Peace of Mind
Protection against Natural Calamities
Protection against Man-Made Hazards
India is definitely progressing, but along with it comes inflation. The standard of living in most metropolitan areas is as high as one of the most expensive cities in the world. In this ever-growing inflation, insurance is your friendly hand that will support you in your times of need.
The prevalence of lifestyle diseases is at an all time high. With the recent pandemic that left us scarred, it has shown us the importance of health insurance in the country – especially during outbreaks and medical inflation.
Road accidents, bad road conditions and irresponsible driving have led to vehicular damage and life-threatening situations in India. The repair and health costs without motor insurance are a huge burden. This emphasises the importance of having car insurance and two wheeler insurance.
Whether you are driving, stressed at work or relaxing at home, if you have insurance, you will have peace of mind when an unforeseen event occurs. Unfortunate mishaps can happen at any time and any place, but you will not be worried about them so much if you have insurance.
Floods, earthquakes, hurricanes, and storms are happening around different parts of India as you are reading this article. It is absolutely crucial to have an insurance policy that will protect you from damages caused by such natural events.
The recent Pahalgam incident opened the eyes of Indians. Terror attacks, thefts, vandalism, and riots are all life-threatening hazards and can also cause significant property damage. Insurance makes sure you are financially protected in such heinous events.
Statistics showing the importance of insurance in India:
- An IRDAI-NCAER survey, covering 30,200 respondents across states and UTs, highlighted that awareness about insurance types, benefits, and grievance mechanisms is significantly lower in rural areas, affecting coverage levels.
- According to a recently compiled report (“India Status Report on Road Safety 2024” by the Transportation Research & Injury Prevention Centre, IIT Delhi), India witnesses around 137,000 road fatalities each year, with over 60% of victims aged 18–35.
- Out-of-pocket expenses for health - ~67% of total health expenditure.
- The Indian insurance sector is experiencing steady growth, with a projected market size of US$228.67 billion in 2025. (IBEF)
- Insurance penetration, which is the ratio of premiums to GDP, was 3.7% in FY24. (IBEF)
- Health insurance: Reported a growth of 21.32% in FY23, with premiums reaching Rs. 97,633 crore (US$11.69 billion) (IBEF)
Types of Insurance Every Indian Should Know
Here’s a misconception: insurance is only about health and life. No. There are several types of insurance available in the market, which include:
Life Insurance
Health Insurance
Motor Insurance
Home Insurance
Term Insurance
Cyber Insurance
Travel Insurance
Life Insurance provides financial support to your family in case of your untimely death, ensuring their long-term security.
Health Insurance covers medical expenses for illnesses, hospitalisations, and surgeries, reducing the financial burden of healthcare.
Protects against damage to your vehicle and third-party liabilities due to accidents, theft, or natural disasters.
Covers your home and its contents against risks like fire, theft, floods, and other unexpected damages.
Term Insurance is a type of life insurance that offers high coverage at low premiums for a fixed term, with no maturity benefits.
Provides coverage against online threats like data breaches, identity theft, and cyberattacks on individuals or businesses.
Covers trip cancellations, medical emergencies, lost baggage, and travel-related disruptions while you're abroad or travelling domestically.
How Indians Can Observe National Insurance Awareness Day?
To participate in this National Insurance Awareness Day, you can:
- Review your own insurance policies. Read all the policy-related documents and understand the inclusions and exclusions of the insurance.
- Re-evaluate your insurance needs. Life is progressing, and so should your insurance. Consider enhancing your coverage options.
- Get acquainted with different types of insurance, insurers and insurance bodies in the market.
- Understand the roles of IRDAI and Insurance Ombudsman.
- Spread awareness about insurance to the people near you through social media, word of mouth and referrals.
- Beware of insurance-related scams and frauds.
- Check government schemes for insurance like ABHA.
Final Thoughts on National Insurance Awareness Day
This day is a yearly reminder for you, ensuring you keep a check on your insurance policies and get acquainted with the world of insurance. Insurance is a boon in today’s world, and safeguarding your finances is a smart decision. Be it health, four-wheeler, bike or life insurance, you should have these basic insurances covered so that you do not mess with your financial well-being in unforeseen circumstances. Coverfox provides an excellent platform to compare insurance from different insurers and helps you start or renew your insurance journey. Celebrate Insurance Awareness Day by starting your roadmap of insurance with Coverfox!
Frequently Asked Questions
What is Insurance Awareness Day?
National Insurance Awareness Day is a significant event in India, celebrated every year on 28th June, to spread awareness about the importance of insurance in life.
What is awareness in insurance?
Awareness in insurance aims at getting acquainted with the different types of insurance available in the market, understanding your insurance policies and safeguarding yourself from potential scams.
Why is National Insurance Awareness Day celebrated?
To serve as a reminder to re-check your insurance policies and understand developments in the world of insurance.
What is insurance in short words?
Insurance, in short, can be explained as financial protection.
How to increase insurance awareness?
Through social media, word-of-mouth, references, leading campaigns, etc.
When was insurance born?
Insurance has roots stretching back centuries, with early forms found in ancient civilisations. In India, the first modern insurance company, Oriental Life Insurance, was established in 1818.
