Spreading Awareness About Insurance In India

National Insurance Day: Spreading Awareness About Insurance In India

Celebrate National Insurance Day by exploring the importance of insurance in India, its key benefits, and why the right coverage is important.

Written by : Knowledge Centre Team

2026-01-12

2122 Views

7 minutes read

Exit Pop Up

Introducing BSE 500 Enhanced Value 50 Fund with Promise4Wealth

50 High-Potential Companies, One Smart Decision

Name is required Name should be Valid
Mobile Number is required Mobile Number should be Valid
DOB is required DOB should be Valid
Annual Income is required
Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

The Indian insurance industry has witnessed rapid growth in the last decade. A majority of the population, however, still lives without any kind of insurance. The COVID-19 pandemic has exposed the gap in the health coverage of the Indian population. 70% of the people in the Indian population remain without health insurance coverage. Though health insurance has received ample attention during the pandemic, other types of insurance, like life insurance, car insurance, and house insurance, should be given equal importance. The National Insurance Day, observed on June 28, was created to increase awareness about insurance and its benefits. Read along to know more and stay secure.

Key Takeaways


  • National Insurance Day, observed on June 28, raises awareness about the importance of insurance in India
  • Insurance in India is broadly categorised into life insurance and general insurance (health, motor, travel, home, etc.)
  • 70% of Indians still don’t have health insurance, highlighting a critical gap in coverage
  • Insurance provides financial security, helps in risk-sharing, and plays a key role in nation-building by mobilising long-term capital
  • With digital platforms, buying insurance has become easy and accessible, promoting inclusion and preparedness for future uncertainties

Secure Your Family’s Future with the Right Life Insurance Plan

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

Enter OTP

An OTP has been sent to your mobile number

Didn’t receive OTP?

Application Status

Name

Date of Birth

Plan Name

Status

Unclaimed Amount of the Policyholder as on

Name of the policy holder

Policy No.

Address of the Policyholder as per records

Unclaimed Amount

Error

Sorry ! No records Found

.  Please use this ID for all future communications regarding this concern.

Request Registered

Thank You for submitting the response, will get back with you.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Types of Insurance

Insurance products have been divided into two broad categories in India: life insurance and general insurance.

  • Life insurance is an agreement between the policyholder and the insurance company under which the insurer promises to pay a mutually agreed amount to the people nominated by the policyholder in the event of their unfortunate demise. The insurance company is bound to honour the contract only if the policyholder pays the premiums without fail. There are various types of life insurance products, and many provide investment and savings avenues along with providing insurance cover.

  • General insurance or non-life insurance is a broad category of insurance products designed to provide financial protection against losses or damages to property and health. General insurance operates on a reimbursement basis, where the insurer compensates the policyholder for specific expenses or damages incurred. This category encompasses diverse sectors, including health, motor, fire, marine, travel, and home insurance, ensuring a comprehensive safety net for one's physical assets and medical well-being.

Also Read - types of insurance

Do you know

Did You Know?

India is projected to become the world’s 6th largest insurance market, overtaking nations like Germany, Canada, and Italy in total market size


Source: IBEF

Introducing Promise4Wealth

Benefits of Insurance in India

The benefits of insurance are generally quantified on the individual’s level, but the insurance industry is also a crucial component of the national economy. Let us take a look at the various benefits of insurance.

  • Safety and Security of Individuals and Businesses: Having insurance coverage ensures that an individual or a business doesn’t have to face financial stress in times of uncertainty. It provides financial certainty to people in unstable times. For instance, life insurance acts as a financial protective ring for families in the event of the death of an earning member. Similarly, the payout from an insurance plan has saved many businesses from doom.

  • Generates Long-Term Capital: Every country needs long-term funds to develop infrastructure and spur growth. The insurance sector is one of the major sources for infrastructure development in the country. The premiums collected from millions of people every year are accumulated and are used as a stable, long-term financial resource. The creation of world-class infrastructure also generates employment and leads to overall prosperity.

  • Helps During Medical Emergencies: With the cost of healthcare rising at a rapid pace, health insurance and life insurance can play an important role in the financial well-being of vulnerable families. India has the largest population of people who pay out of their pocket for medical treatment. Having insurance coverage is equally important for the young as well as the elderly. Many life insurance policies provide the option to cover terminal and critical illnesses along with life cover. Life insurance with terminal illness cover or a health insurance policy has become a necessity with the rising incidence of lifestyle diseases.

  • Diversify Risk: If a person has to build a financial buffer at an individual level, they may have to set aside a substantial amount of money, which can be used in other productive ways. Insurance diversifies the risk among a large number of people and reduces the burden at the individual level. Whenever a sum assured is paid out, it is deducted from the accumulated corpus collected from millions of policyholders.

  • Wide Coverage: While non-life insurance products are generally designed to cover a specific risk, life insurance plans can be used to cover a variety of risks. Life insurance plans like term insurance can be used to cover the risk arising out of long-term liabilities such as home loans. On the other hand, if you opt for a terminal illness, disability or accidental cover with life insurance, it will cover you against the mentioned risks, along with providing life cover.

Conclusion

The availability of new-age technologies has transformed the way insurance and other financial services sectors operate. Insurance companies have adopted newer distribution models to improve customer experience. You can easily purchase an insurance plan from the comfort of your house. If you want to enjoy life cover as well as save for the future, opt for a plan from Canara HSBC Life Insurance. Take a proactive step today, review your needs, choose wisely, and secure a safer tomorrow for your family.

Glossary

  1. Life Insurance: A contract where the insurer pays a lump sum to beneficiaries upon the policyholder’s death for premiums
  2. General Insurance: Covers non-life risks such as health, vehicle, property, or travel-related losses
  3. Premium: The amount paid by the policyholder to keep the insurance policy active
  4. Sum Assured: The guaranteed amount the insurer will pay out when a claim is made under the policy
  5. Terminal Illness Cover: An insurance feature that gives a payout upon diagnosis of a terminal illness, helping cover urgent expense
Glossary book
Uncertain About Insurance

FAQs

National Insurance Awareness Day is observed every year on June 28 in India. The day is dedicated to promoting insurance awareness and encouraging individuals to understand the role of insurance in protecting their financial future.

Spreading insurance awareness empowers individuals to look beyond just the tax-saving aspects. It helps them understand how products like life insurance and general insurance act as a safety net, protecting personal savings from being drained during emergencies and contributing to the national insurance objective of long-term economic stability.

National Insurance Awareness Day highlights both life insurance and general insurance, including health, motor, travel, and home insurance. The aim is to spread knowledge about all forms of protection rather than limiting awareness to only one type of policy.

Yes, absolutely. Life insurance is a cornerstone of these initiatives, with a special emphasis on term insurance due to its role as a pure protection tool. On this day, insurers often provide resources to help people understand the difference between complex investment products.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

Recent Blogs

Benefits of Gifting Life Insurance Cover to Your Spouse
5 Benefits of Gifting Life Insurance Cover to Your Spouse
09 July '26
1100 Views
8 minute read
Discover how gifting life insurance to your spouse supports financial security, protection and long-term family planning.
Read More
Life Insurance
How to Secure Your Future with Whole Life Insurance?
How to Secure Your Future with Whole Life Insurance?
09 July '26
1025 Views
6 minute read
Discover how whole life insurance provides lifelong coverage and helps support long-term financial planning goals.
Read More
Life Insurance
Short Term Investment Plans Thum Desktop
Best Short-Term Investment Options with High Returns in 2026
08 July '26
1360 Views
12 minute read
Best Short-Term Investment Options in India. Find the top 10 short-term investment options with high returns for a short time.
Read More
Life Insurance
How Insurance Companies Make Money Thum Desktop
What is Deductible in a Life Insurance Plan?
08 July '26
1409 Views
8 minute read
Learn what is deductible in a life insurance plan and how it impacts your coverage. Get expert insights and guidance from Canara HSBC Life Insurance for better planning.
Read More
Life Insurance
Persistency In Insuarance Thum Desktop
Persistency Ratio in Insurance: Meaning and Importance
08 July '26
2868 Views
10 minute read
Know what the persistency ratio in insurance means, how it is calculated, why it matters for insurers and policyholders, and what it indicates about policy performance.
Read More
Life Insurance
What is Insurance
What is Insurance? Meaning, Types & Benefits Explained (2026)
07 July '26
9340 Views
10 minute read
Understand insurance meaning, types, benefits & why insurance is important for financial security in India.
Read More
Life Insurance
Can You Increase Or Decrease Your Term Insurance Coverage Thum Desktop
PLI Interest Rate 2026: Updates, Key Features & Eligibility
07 July '26
1231 Views
9 minute read
Explore the latest PLI interest rates, bonus updates, and key features for 2026. Learn about policy types, eligibility, and benefits of Postal Life Insurance.
Read More
Life Insurance
Fathers Day 2026 Thum Desktop
Happy Father's Day 2026: Celebrate Every Father's Promise of Protection
20 June '26
33 Views
5 minute read
Celebrate Happy Father's Day 2026 by honouring every father's love, care and commitment. Discover how life insurance helps protect your family's future.
Read More
Life Insurance
How Insurance Companies Make Money Thum Desktop
What is an Insurance Coverage?
06 May '26
1403 Views
8 minute read
Learn what insurance coverage means, how it works and why choosing the right coverage is important for financial protection.
Read More
Life Insurance

Life Insurance - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.

Family Shield: Enhanced Protection

iSelect Smart360 Term Plan
  • 3 Plan options
  • Life cover till 99 years
  • Steady income benefit
  • Block your premium at inception

Start Young, Pay Less, Stay Secured

Young Term Plan
  • Life cover till 99 years
  • Coverage for spouse
  • Block your premium rate
  • Covers 40 critical illness

Fixed Returns, Zero Risks & Worries

iSelect Guaranteed Future Plus
  • 4 Plan options
  • Life cover + Guaranteed benefits
  • Accidental death benefit
  • Premium protection cover