Insurance Awareness Policy

Insurance awareness plays a key role in ensuring policyholder’s protection and also in development of insurance sector. Lack of insurance awareness has proved to be one of the hurdles in penetration of insurance across the country.

• IRDA Initiatives towards Insurance Awareness

  Protection of interest of policyholders along with development of insurance sector in an orderly manner is the prime mission of IRDA. IRDA focus on insurance literacy and have also taken many initiatives for policy holder protection while maintaining delicate balance in the insurance industry.

  IRDA has launched an exclusive consumer education portal www.policyholder.gov.in to provide objective information.

• What is Insurance?

  Insurance is nothing but an agreement between the insurer (The Insurance Company) and the insured (a person) to pay an amount as compensation if any unexpected event occurs. This amount may vary from a few hundred to even a few crores. The maximum amount the insured person can claim depends on the amount agreed upon as per the insurance policy. Briefly, Insurance is a risk mitigation tool. You transfer your risk to an insurance company in exchange of a premium. So the benefit is that if you incur a loss from an insured risk, the insurance company assumes all or part of that loss.

• Why do we need Insurance?

  There may be scenario where the loss that we would incur due to some event would be extensive and we would not be in a position to incur the losses. At these events, insured person can claim an amount corresponding to his disability losses and use the money to sustain his family or other liabilities.