3 days ago
The Silent Crisis: Indian Families Delay Crucial Insurance Decisions
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Sanjiv Bajaj points out the cultural delay in Indian households on insurance, causing financial instability.
Authored by Sanjiv Bajaj, Jt. Chairman & MD, BajajCapital: In Indian households, silence often surrounds subjects that matter the most — death, illness, disability, and financial crisis. We speak of ambition and dreams with pride, but whisper about risks and realities. Insurance, unfortunately, finds itself in that category of hushed conversations. It's bought after a health scare, after a friend's tragedy, or after a sudden loss — rarely before. In doing so, we gamble not just with money, but with the very stability of our families' future.
This is not just a cultural pattern. It's a quiet epidemic of delay. And the cost? It shows up in unpaid hospital bills, denied claims, debt traps, and shattered dreams. According to the IRDAI's 2023 Annual Report, more than 15,000 life insurance claims were rejected — many for avoidable reasons like delayed policy initiation or inaccurate disclosures. In health insurance, only 28% of women over 50 are covered under individual plans. Among homemakers, the number is even lower.
Behind these numbers are families who did everything else right — they saved, they sacrificed, they planned for weddings, tuition fees, and festivals. But they postponed the one safety net that could have secured it all.
The Cultural Delay: Why We Wait
There are emotional, social, and systemic reasons why insurance often arrives too late in Indian lives:
Higher Premiums: The later you buy, the more you pay — often 2x or 3x for the same cover if bought a decade earlier.
Denied Coverage: Post-40, insurers scrutinize medical histories more strictly. Chronic conditions can lead to limited or no coverage.
Weaker Financial Buffers: Without a health or life insurance policy, medical emergencies lead to liquidating savings, taking personal loans, or falling into debt traps.
Inheritance Chaos: A sudden death without a claim-ready policy (clear nominee, updated contact details, etc.) delays payouts and creates emotional and legal distress.
Emotional Toll: When parents or partners are uninsured, the burden falls on children, siblings, or extended family — emotionally, physically, and financially.
A 2022 case in Bengaluru involved a 38-year-old tech professional who passed away unexpectedly. Though he had employer-provided group insurance, the coverage lapsed the moment he switched jobs. He had not purchased an individual term plan. His wife and two young children were left scrambling — financially unprepared, emotionally shattered.
This isn't an exception. It's the rule playing out across cities and towns in India.
What Needs to Change — And How We Can Do Better
Normalize Insurance Conversations- Talk about it as essential, not optional. Make it part of every financial planning discussion — especially at milestones like marriage, childbirth, or home loans.
Start Early- The best time to buy insurance is when you don't need it — because you're healthy, young, and eligible for affordable premiums.
Cover the Caregivers- Insure homemakers and parents. Their contributions, though not counted in rupees, are the bedrock of family stability.
Go Beyond the Basics. A term plan and a claim-ready health insurance policy (with updated nominee details and documentation) should be considered non-negotiable.
Review Annually. Lives change, income changes, families grow. So should your coverage.
Conclusion: Insurance Is Not a Product. It's a Promise
Insurance is not just about money. It is about dignity in distress. It is about protecting your child's education from being derailed by a diagnosis. It is about ensuring your partner doesn't spend years in court chasing a claim. And above all, it is about giving your family the only thing more important than wealth — certainty.
If India wants to protect its future, it must insure its present — proactively, honestly, and urgently.
It is authored by Sanjiv Bajaj, Jt. Chairman & MD, BajajCapital
The views expressed in this article are those of the author and do not represent the stand of this publication.
About the Author
Varun Yadav
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian More
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