National Insurance, more popularly known in abbreviation as (NI) is an eminent insurance company of the United Kingdom. It is rated among the pioneer insurance companies in the UK, established under the patronage of the government. The long history of National Insurance manifests the reliability of its customers on its various insurance policies. National Insurance started its career in 1911 under the promulgation of the National Insurance Act 1911. Initially, the insurance company offered insurance policies against illness and unemployment. Later on, its operational network was expanded and it included also retirement pensions and other insurance plans of the same nature. As National Insurance, still, works under the government patronage, its operational structure is entirely different to that of other privately own insurance companies.

All citizens of the United Kingdom are allotted national insurance number called NI number. For the identity of national insurance number, identity cards containing NI numbers are issued to all residents of the country. These cards are almost similar to the bank credit cards. There is particular pattern on which the NI number is allotted. It has two letters in the beginning and afterwards six digits and at the end again a letter. Safety of you national insurance card is also necessary on your part as the replacement of national insurance card can be obtained only once in one’s life span. For all sorts of insurance claims, the residents must have their national insurance number. The facility is of national insurance number is also available for those who are not the permanent residents of the United Kingdom and stay there only for work purpose. They are required to apply for NI number through Department for Work and Pensions (DWP). Unlike many other countries of the world, The United kingdom does not have the system of national identity cards. The citizens are assigned code numbers against their national insurance number and thus your NI number also become your identification.

The most significant part of National insurance is national insurance contributions, which is similar to the insurance premium in other insurance schemes. All the citizens and the persons having temporary residential permits have to pay their national insurance contributions as the essential part of their living in the UK. National Insurance Contributions, termed also as  (NICs) are paid on the basis of your annual earning and thus could vary person to person. In case of employees, national insurance contributions are paid by their employers both on their annual income and the special benefits they enjoy from their employer companies.