It began with a sudden, sharp pain in the abdomen. By the time she reached the hospital, the doctors said she needed immediate surgery.
The cost? ₹3.2 lakh, payable upfront.

Her son stood at the billing counter—swiping cards, calling friends, transferring whatever savings he had. They had spoken about buying insurance after his first salary hike, but “life expenses” always came first.

She recovered, but the aftermath was years of debt.

This is the reality for millions of Indian families—medical emergencies don’t wait, and without insurance, the price is paid not just in money, but in security, dignity, and future opportunities.

The Numbers Tell the Story

• Out-of-pocket spending (OOPE) still accounts for around 47% of India’s total health expenditure, one of the highest proportions globally.
  
• Each year, 50–60 million Indians are pushed into poverty by catastrophic medical expenses.
  
• Government programs like Ayushman Bharat (PM-JAY) cover over 500 million people with ₹5 lakh annual insurance, making it the largest government healthcare program in the world.
  
• Despite this, only about 1 in 5 Indians has a policy capable of realistically covering the cost of a modern hospitalisation in a metro or Tier-1 city.
  
• Public health spending remains modest—just around 2% of GDP—leaving a large share of costs to be borne by individuals.
  

Why the Protection Gap Persists

1. Complex Language
   Insurance terms like sum insured, sub-limits, and co-pay make policies hard to understand, discouraging people from buying.
   
2. Delaying the Decision
   Many intend to buy “soon,” but keep postponing until an emergency forces the issue.
   
3. False Sense of Security
   Employer-provided coverage or minimal personal policies create dangerous gaps when major medical events occur.
   
4. Trust Deficit
   Stories of rejected or delayed claims overshadow the majority of smooth claim settlements, eroding public confidence.
   
5. Limited Scope of Cover
   Even large-scale schemes often don’t cover outpatient care, diagnostics, or chronic disease management, forcing families to spend from their own pockets.
   

Closing the Gap Requires a Mindset Shift

This is not just about more products—it’s about changing how we see insurance:

• Start with the ‘Why’ – View insurance as securing outcomes, not ticking a box.
  
• Simplify the Language – Explain policies in plain, everyday terms.
  
• Expand Education to Bharat – Make rural and Tier-2/3 markets a priority for insurance literacy.
  
• Humanise Digital Tools – Use technology to guide and personalise, not overwhelm.
  

Insurance Is Not a Bill. It’s a Promise.

Health insurance is a commitment to your loved ones: “If life throws something at us, we’ll be okay.”

If an emergency came tonight, could your family cope without loans, distress sales, or painful compromises? If the answer is no, the time to act is now.

Because in a crisis, it’s not the cheapest plan that matters—it’s the one that’s ready when you need it most.

Get covered. Stay covered. Protection is peace of mind.

The author is Jt. Chairman & MD, BajajCapital