What is insurance?

Insurance is an agreement between you and an insurance company. You pay a small amount regularly, called a premium. In return, the company promises to pay you or your family an agreed amount if a specific loss happens, such as death, illness, an accident, or damage to your vehicle or property. Many people share the risk, so no single family has to carry a big loss alone.

Benefits of insurance

• Financial protection: the insurer pays when a loss happens, so your savings stay safe.
• Peace of mind: your family, home and business are secure against the unexpected.
• Disciplined savings: some life plans build a maturity or income benefit over time.
• Access to healthcare: health cover can pay for treatment, including cashless treatment at network hospitals.
• Legal cover: third-party motor insurance is compulsory for vehicles on Indian roads.
• Lower cost today: GST on individual life and health insurance premiums has been exempted since 22 September 2025.
• Tax benefits: these may apply under the Income-tax Act depending on your tax regime and current law. Please check with a tax adviser.

Why do you need insurance?

• Life is uncertain. Illness, accidents and losses do not come with a warning.
• Medical costs are rising, and one hospital stay can use up years of savings.
• If your family depends on your income, they need protection if that income stops.
• Vehicles, homes and shops face damage, theft and liability claims.
• People are living longer, so a steady income after retirement needs planning.

India's insurance sector at a glance

Source: IRDAI Annual Report 2024-25 and Swiss Re sigma, as published by the Government of India (PIB). Figures are for 2024-25 unless stated.

What does this mean? Insurance penetration measures premiums as a share of the country's GDP. India is at about half the world average, so most families are still under-insured.

Potential of the insurance sector

• A large gap to fill: with penetration at roughly half the global level, there is room for many more families to be covered.
• A national goal: the regulator's vision is "Insurance for All by 2047".
• Lower prices: the GST exemption on individual life and health policies (from 22 September 2025) makes cover more affordable.
• More investment: the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 raised the foreign investment limit in insurers from 74% to 100%.
• More digital services: online buying, renewals and claims are becoming easier through new digital platforms.
• Careers: a growing sector needs trusted, licensed advisors in every town and village.

Who is an insurance agent?

An insurance agent is a person licensed by the insurance regulator (IRDAI) to represent an insurance company. The agent explains the products, helps you choose a suitable policy, completes the paperwork, and supports you with renewals and claims. Agents earn a commission from the insurer. Without a valid licence, nobody may sell insurance.

How to become an insurance agent

1. Be at least 18 years old.
2. Have the minimum school qualification required by IRDAI (Class 10 or Class 12, depending on the area).
3. Complete the pre-licensing training from an IRDAI-approved institute, or through an insurer.
4. Pass the IRDAI-approved agent examination.
5. Register with an insurer and receive your agent licence. You then represent that insurer.
6. Renew your licence when it expires (currently every three years) and keep learning about new products.

Rules, fees and training hours can change. Please check the latest requirements on the IRDAI website (irdai.gov.in) or with the insurer.

What is life insurance?

Life insurance pays a fixed amount, called the sum assured, to your family if you die during the policy term. Some plans also pay you a benefit when the policy matures, so they protect your family and help you save at the same time.

Main types of life insurance

• Term plan: pure protection with a high cover for a low premium.
• Endowment plan: life cover plus a maturity benefit.
• Whole life plan: cover for your whole life.
• Money-back plan: regular payouts during the policy term.
• ULIP (unit-linked plan): insurance combined with market-linked investment.
• Pension or annuity plan: a regular income after retirement.
• Child plan: saving for a child's education or marriage, with protection for the parent.

Benefits

• Replaces your income for your family if you are not there.
• Helps repay loans so your family does not carry the burden.
• Builds money for your child's education, marriage or your retirement.
• Leaves something behind for your loved ones.
• Tax benefits may apply under current law. Please check with a tax adviser.

Tips before you buy

• Start early. Premiums are lower when you are younger and healthier.
• A commonly used rule of thumb is a cover of about 10 to 15 times your yearly income.
• Give true and complete information in the proposal form.
• Name a nominee, and keep the nominee's details up to date.
• Read the policy document. You have a free-look period (usually 30 days) to review it and return the policy if it does not suit you.

Choose a company

Tap a logo to see that company's life insurance policies.

What is general insurance?

General insurance covers everything other than life, such as your vehicle, home, shop, travel and belongings. It protects you against loss, damage, theft and legal liability. Most general insurance policies run for one year and are renewed every year.

Main types of general insurance

• Motor insurance: for cars, two-wheelers and commercial vehicles. Third-party cover is compulsory by law.
• Home and fire insurance: protects your house and belongings from fire, theft and natural events.
• Shop and business insurance: covers stock, equipment and business interruption.
• Travel insurance: covers medical costs, baggage loss and trip problems.
• Marine insurance: protects goods in transit.
• Personal accident insurance: pays if you are injured or disabled by an accident.
• Liability insurance: covers claims made against you by other people.

Benefits

• Pays for repair or replacement after damage or theft.
• Covers the legal cost of harm caused to other people.
• Helps a business restart quickly after a loss.
• Rewards careful driving with a no-claim bonus on motor policies.

Tips before you buy

• Insure for the correct value. Under-insuring reduces your claim.
• Check the add-ons you actually need, such as zero depreciation for a car.
• Renew before the expiry date so cover never lapses.
• Keep bills, photographs and documents safe. They help when you claim.

Choose a company

Tap a logo to see that company's general insurance policies.