Star Insurance Training Program

             Awareness about insurances is the knowledge and understanding of the benefits and risks of different types of insurance products and services. Insurance is a way of protecting oneself from financial losses due to unforeseen events such as accidents, illnesses, natural disasters, theft, etc. "Insurance can also provide peace of mind, security and savings for the future".

            Awareness about insurances is important for making informed decisions about one’s insurance needs and choosing the best options available. It can also help in avoiding frauds, disputes and grievances related to insurance claims and policies. Awareness about insurances can also increase the demand and penetration of insurance in the country, especially among the under-served segments such as women, rural dwellers and the self-employed

            However, awareness about insurances is still low in India compared to other countries. According to a report by Swiss Re, India has the second highest protection gap in Asia, which means that the actual insurance cover is much lower than the required insurance cover for the population. Some of the reasons for low awareness about insurances are lack of financial literacy, complex and confusing insurance products, inadequate information and guidance from agents and intermediaries, low trust and confidence in insurance companies, high cost and affordability issues, etc.

Indian people about insurance are a diverse and large group with different needs and preferences for insurance products and services. According to the World Bank, by 2010, more than 25% of India’s population had access to some form of health insurance. However, India still has a low insurance penetration rate compared to the global average, which means that many people are under-insured or uninsured. According to a survey by NITI Aayog, nearly 30% of Indian population do not have any health insurance, and the actual numbers may be higher due to gaps and overlaps in the existing schemes.

Some of the factors that influence Indian people’s awareness and uptake of insurance are:

• Financial literacy: Many people lack the knowledge and understanding of the benefits and risks of insurance, and how to choose the best option for their need.
• Affordability: Many people find insurance products too expensive or unaffordable, especially in the rural areas and among the self-employed.
• Trust and confidence: Many people do not trust or have confidence in insurance companies or agents, and fear frauds, disputes and grievances related to insurance claims and policies.
• Availability and accessibility: Many people do not have access to adequate information and guidance on insurance products and services, or face difficulties in reaching out to agents or intermediaries.