Financial Literacy and Consumer Education Initiatives of IRDA – A Step towards Literate Policy Holders

Exploring the Financial Literacy and Consumer Education Initiatives of IRDA in the Insurance Sector

Abstract

At the time of the opening up of the insurance sector, the levels of insurance diffusion and insurance density were very low. One of the main reasons for such low level is the lack of awareness about the insurance products and the benefits derived from policies. IRDA, as insurance sector regulator, has been playing a pro-active role in promoting insurance education since its beginning and has adopted a strategic approach to enhance consumer awareness. Insurance education helps a consumer to understand their needs and risks, ascertain choice of insurance policies for managing various risks, appreciate value of holding an insurance product and to know about the do’s don’ts before and after purchase of an insurance policy. Stepping up its efforts to increase insurance awareness, IRDA celebrated IRDA Foundation Day (April 19) as Insurance Awareness Day. Insurers were also advised to organise programmes on this day for promoting Insurance Awareness among members of public. Various seminars were also conducted by consumer bodies and NGOs, a Research Grant Scheme promoting applied research in insurance was also floated. The present paper is an attempt to analyse various financial literacy and consumer education initiatives undertaken by IRDA as a regulator of insurance Sector.