India’s life insurance industry has called for a broader and more balanced evaluation of life insurance products, arguing that their long-term financial benefits far outweigh isolated concerns such as mis-selling. The appeal comes as insurers seek to improve awareness of life insurance’s role in financial protection and long-term wealth planning. The Insurance Awareness Committee–Life Insurance (IAC-Life), operating under the Life Insurance Council, said life insurance should be viewed as a long-term financial protection instrument rather than assessed solely through short-term returns. According to the committee, the sector continues to deliver substantial value through financial security, family protection and disciplined savings.
“Life insurance is designed to deliver value over time through financial security, protection for families and disciplined savings,” said KamleshRao, Chairperson of IAC-Life. While acknowledging that instances of mis-selling exist and require industry attention, Rao said such cases represent only a small portion of an ecosystem serving millions of policyholders. The committee highlighted that life insurance remains the only financial instrument offering a free-look period, enabling policyholders to review and return a policy within a stipulated timeframe if it does not meet their requirements. It added that the industry paid more than ₹6.3 lakh crore in claims during FY2024-25, including death claims, maturities, annuities and withdrawals.
The insurance sector sees significant growth opportunities as awareness of financial protection rises across Assam and the Northeast. Industry participants note that increasing household incomes, expanding financial literacy and growing demand for long-term savings products are encouraging more consumers to consider life insurance. The region also mirrors the national challenge of addressing a large protection gap, particularly among younger adults. IAC-Life noted that 87% of Indians continue to face a life insurance protection gap, with the figure exceeding 90% among those aged 18 to 35. Formed in 2019, the committee comprises 24 life insurance companies working together to drive nationwide awareness and improve understanding of life insurance products.
