Do you think Indians have right mentality towards insurance?

No. There's a huge gap. It's a large question mark loaded with doubt, fear, uncertainty, extra expenditure etc etc .......  

no, most of the indians misguided by the lic agents, that is in tamilnadu especially, only lic got the government recognition so u can invest lic (this is the lic agents canvassing for the business).  many of them unaware there is an IRDA thebody to control the whole insurance companies.

i am also a HDFCSL  financial consultant,  many of the investors asking me is it lic only got government recognition.    always i am telling them there is an IRDA to controlall the insurance companies. 

most of them unaware about IRDA,

The right information to rural areas which is the major factor ignored by insurance sector.

We can do a lot in this.

Radhakrishna AL

Majority of the people do insurance for tax savings purpose not exactly knowing what coverage does he/she actually need.

No, Indians do not have right mentality towords insurance. I agree that since from inception of insurance company of Oriental Life Insurance Company in 1818 & privatisation of insurance sector, there have been a drastical growth in insurance sector & more people have been investing in insurance. But still it is far far less when we compare to developed nations where in India only two million people are covered under mediclaim i.e. 0.2% not even 1% where as in US it is 75%. We can see only in urban side more people are investing but it is not the same in rural side. I think wide & rapid insurance awareness activities should be taken place in rural areas. In conclusion i can say now insurance sector is booming like anything in India & there is a promising growth of insurance sector in future but the only thing is we have to tap & explore un-exploited place in India.

There is lot of confusion over the products.

hi adrija, I like to mention one thing, in India still half of the people are below poverty level. They can not have their meal twice a day. Insurance is just a luxury to them. Moreover the salaried people take the insurance just to minimize their tax burden. So how can you say that the people have the right mentality? 

insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. In general sense it gives us the cover in terms of money against the loss caused due to death or accident.In return insurance premium is required to be paid. So it is a hedging contract between the insurer and the insured. But in our country the insurance is generally seen as an investment. Generally insurance is take to get deduction u/s 80C. Basically Indians are not very much concerned about insurance. They do not have the mentality to get insured. Because they think the premium they are paying is just a wastage of money or they just make the payment as a mode of investment. they do not have the right attitude towards the insurance. The insurance sector is now growing only in the urban areas among some educated people but the mass of India is still outside the range of insurance. Presently the insurance sector is in booming condition in India but the target will not be fulfilled unless the attitude of the mass towards the insurance is changed.

NO. I WAS IN THIS FIELD FOR ABOUT 1 YR. WHAT I EXPERIENCE THAT EITHER MOST OF INDIA USE INSURANCE FOR SPECIFICALLY AS TAX SAVING INSTRUMENT AND OTHER USE IT AS TOOL OF INVESTMENT BY INVESTING IN ULIP LIKE PRDUCT. THEY DONT UNDERSTAND THAT INSURANCE IS TO PROVIDE FINANCIAL SECURITY TO THEIR FAMILY. THEY EVEN TAKE POLICIES IN THE NAME OF DEPENDENTS WITHOUT THINKING THAT IF SOMETHING HAPPENS TO THEM THEN WHO WILL PAY THE PREMIUM.

THERE IS ALSO MISINFORMATION SPREAD BY THE AGENTS WHO FOR THEIR BENEFITS AND BECAUSE OF COMPANY'S PRESSURE MOST OF TIME MISS SELLING THE PRODUCT.

COMPANY SHOULD ALSO SHOULD NOT PRESSURISE THEIR AGENTS FOR TARGET HITING SO THAT THESE AGENTS OPT FOR MISS SELL. IN MEDIA ALSO FOR ADVERTISEMENT PURPPOSE VARIOUS FORUMS BY MANY CO. IS ARRANGED BUT THEY ARE NOT MUCH EDUCATING. SO TO EDUCATE INSURED TRUE MEANING OF INSURANCE SHOULD BE PRESENTED IN EFFECTIVE WAY SO PEOPLE UNDERSTAND ITS REAL VALUE AND WORTH.

More often than not many of us lose sight of the fact the primary function of insurance products are for insuring us against untoward incidents including survivors in the event of the death of the insured. The cost to the insured is the premium.

But these days many of the the investment products and funds are packaged with insurance benefits as well. This has largely contributed to the blurred understanding of the investor about insurance.

Let us put it in a different way. A basic insurance product offered by an institution will offer you the benefit of insured money in the event of death or on maturity of the policy whichever is earlier. Now if we look at it from an investment angle , by applying the expected rate of return on  the future value of the insured money that we will receive say on maturity the persent value of that money will be not an attractive proposition for us.

This is where we need to understand that the primary benefit of the product is the life cover or the accidental cover for the insured and not the returns from the product. Hence this has created a definite misunderstanding amongst the investors about insurance.

after the global finacial crisis and the contoversies behind ULIP most of the people trending to secure their fund rather than insurance

Yes you are right that many educated people have right mentality towards insurance products. But the % is very low. Because Some are using these products as an investment whereas some are just deposit their money(saving). Means they haven't proper knowledge about the insurance importance or features of insurance products..  Whereas some people have proper knowledge about the importance and features of insurance, they invested their money as an investment & insurance with tax saving purpose also...