National Insurance Awareness Day - 28th June

When is National Insurance Awareness Day and Why Is It Celebrated?

National Insurance Awareness Day is celebrated on 28th June every year, promoting the critical role of insurance in financial protection. In India, awareness remains low, leaving millions vulnerable to unexpected financial burdens. With the rise in diseases, healthcare needs, and crime rates, adults and senior citizens must protect their savings and assets with different types of insurance plans.

Why Insurance Is the Foundation of Financial Stability

Insurance is more than just a cost; it is a safety net. It shields individuals and families from unpredictable financial setbacks. Whether it is medical bills, house damage, theft, vehicle damage, accidents etc., people with insurance can say – Achha Kiya Insurance Liya, making sure that their financial needs are covered.

There are several types of insurance policies offered in India like health, motor and home insurance. Together, they can allow people to be worry-free during emergencies. According to Section 80D of the Income Tax Act, many insurance plans also help people save taxes. These benefits ensure that, while people are covered, they are also keeping their wealth safe.

The High Cost of Being Uninsured or Underinsured

Many believe insurance is costly and may not be useful. However, insurance should be seen as a responsible decision, with the ultimate payoff being peace of mind.

According to Niti Aayog’s report, 30% of India’s population, or 40 crore individuals² do not have any financial protection for health emergencies.

Without proper coverage, families may be forced to deplete savings or take loans. Here’s how adequate coverage shields you:

• Protects savings and prevents borrowing money for medical emergencies.
• Ensures that your valuable assets, such as house, house contents, vehicles, business properties, etc., are insured and protected against emergencies like fire, theft, and natural calamities.
• Have a peace of mind that your family is protected financially in case of your death or disability due to unfortunate events.

Types of General Insurance Recommended

There are several types of insurance available. It is important to analyse one's requirements and build a comprehensive safety net. Considering factors such as family medical history, rising medical costs, regional risks like floods, cyclones etc., before selecting a plan is necessary. To build financial security, here are the essential insurance types you should consider based on your needs.

• Health Insurance: Guards against medical emergencies.
• Motor Insurance: Protects your vehicle and third party liabilities.
• Home Insurance: Protects your residence and possessions.
• Crop Insurance: Protects farmers’ yield and income from several types of losses.
• Travel Insurance: Covers unexpected events during domestic or international travel.
• Commercial Insurance: Protects businesses from various types of financial losses.

Why Should Every Indian Review Their Insurance Coverage Annually?

Insurance is not a one-time job. Life changes like marriage, new child, job switches, property upgrades, or inflation—all impact your coverage needs. National Insurance Awareness Day is a perfect occasion to review the insurance plans and make sure that your changing life and lifestyle are covered. Contact your insurer to revisit your plan to ensure you, your loved ones, and your assets are financially covered.

Some other reasons why you should check your insurance plan annually are:

• Inflation: With the rising inflation, there may be a need for more coverage and sum insured so that your insurance plan can beat the rising costs when the need arrives.
• Policy Clauses: Many insurance plans need to be checked annually to check the status of certain benefits. For example, health insurance has a waiting period for pre-existing diseases.
• No claim bonus: Many insurance plans also reward people with a no-claim bonus if they do not raise a claim request during the policy term.
• New Updates: Insurers may introduce changes in insurance policies and also launch innovative products which the insured should be aware about.

Factors like these need to be checked annually to ensure you are using your insurance policy correctly and enjoying all the assured benefits.

Simple Steps to Stay Financially Protected

On this National Insurance Awareness Day, you can take these practical steps to stay financially protected:

• Buy General Insurance: Purchase essential insurance policies like Health, Motor, Home, Crop, Travel, and Commercial if you haven't already.
• Review Policies: Schedule a policy review with your insurance agent to align coverage with the current life stage.
• Make required Updates: Update beneficiaries to all the policies where it is applicable.
• Compare Plans: While purchasing insurance policies, compare the options offered by different insurers. Consider the one that has the minimum premium cost, with maximum coverage and sum insured.
• Study Insurance Document: Thoroughly study your policy documents to understand the inclusions, exclusions, sub-limits, etc.
• Explore Add‑Ons: For each type of general insurance, there are several add-ons to cater to your unique needs. Explore them and purchase those that are needed by you and your family.

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