Financial inclusion has become one of the priorities of the current policies in India, and the policy has profound implications on the insurance industry and its legal and operational framework. This paper investigates the role of financial inclusion on the insurance legislation and practices in India, in terms of insurance penetration, distribution channel, claims settlement, consumer protection as well as grievance redressing. The research design employed is descriptive and analytical, where 300 respondents (consisting of policyholders, insurance intermediaries, and professionals in the insurance administration) are utilized as primary data but they are supported using secondary data of peer-reviewed journals and regulatory sources. The most suitable methods are percent analysis and the test of hypothesis that are utilized in evaluating how indicators of FI (access to banking and digital financial services) relate to the outcomes of insurance practices. The results demonstrate that FI has also enhanced insurance coverage to a great degree and first-time participation as well as digital inclusion has increased claims settlement efficiency. Nonetheless, there exist loops loopholes in insurance literacy, the sufficiency of disclosure and the comprehension of legal redress issues, which restrain the efficient execution of insured safeguarding. It concludes that FI transforms substantively the law and practice of insurance but that its achievement requires greater attention to market-conduct regulation, consumer awareness and the accountability of an institution to create an inclusive and sustainable insurance protection...