India’s uninsured majority: Decoding the 95% gap revealed by the National Insurance Academy


18 Jan 2024

Highlighting the 95% gap revealed by the National Insurance Academy.

The National Insurance Academy was established back in 1980 in Pune. It has become a pioneer institution for research, executive training, insurance studies, pensions, and other associated disciplines. It operates not only in this country but abroad too, including Africa, Southeast Asia, and certain Middle Eastern countries. According to its report based on a critical survey, has revealed that a major 95% of the 144 crore Indian population, remains uninsured to this day.

Be it health insurance or general insurance, the situation is not much different. This report essentially highlights the importance of bridging this massive gap by utilising certain effective comprehensive reforms.

Highlighting the significance of bridging the gap

Below are key points that highlights how to bridge the gap:

Natural calamity insurance

In a country like India, where the majority of the economy still depends on agriculture, natural weather conditions play a major role. However over 95% of the population does not possess natural calamity insurance, making them exposed and vulnerable to damages and losses due to natural catastrophes.

Property insurance

According to this report, nearly 84% of the total population belongs to low to middle-income categories, 77% of the coastal population, and the majority of tier 2 and tier 3 city populations, still grossly lack property insurance.

Crop insurance

There have been provisions for mandatory crop insurance for every farmer, who has taken bank loans, and/or receives premium financial support from specific agricultural input suppliers and other microfinance organisations.

Annuity and pension protection

The report reveals that 93% of the population suffers from the gap between pension and annuity. Moreover, only a meager 24% of the employee strength remains covered under employee retirement protection plans. The report also states that there has been an insignificant penetration of 14% among low-income individuals and 25% among lower-middle-income categories.

Life insurance

The lack of life insurance protection among 87% of the population presents a business growth of an enormous scale.

Health insurance

Despite the host of health insurance benefits that it offers, a whopping 73% of the entire population remains out of the protective coverage of health insurance. To bridge this gap, an acute collaboration between several industry groups, NGOs, and government is essential for creating several simple micro health insurance products.

Cyber protection

Due to the increasing popularity of the digital sector, the cyber protection gap cover is on the increase due to enhanced exposure to digital boosts. The report said that nearly 62% of consumers are willing to ensure the protection of their digital documents using cyber insurance.


Health insurance and general insurance are necessities and not any luxury. Insurance coverage protection is essential to handle unprecedented life events with efficiency. Kotak General Insurance offers promising products in this sector. However, raising the consciousness about the benefits and importance of insurance remains to be the primary step to ensure such a vast majority of this densely populated country.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.