On the surface, you might feel that your family is well protected against unforeseen events as you have bought an insurance plan, but the reality is otherwise. Most Indians living in urban areas appear to be well-insured but beneath the numbers lies a harsh financial reality. A new report by Bajaj Capital Insurance Broking Ltd, released on Insurance Awareness Day, reveals that a majority of insured Indians are still dangerously under-protected.
Even insured families remain vulnerable to emergencies
According to the Suraksha Kavach Report 2025, a staggering 61% of urban Indian households could face financial instability from a single medical emergency, despite holding some form of insurance.
Gen Z, women, and high earners—caught in a protection illusion
From underinsured working women to a risk-blind Gen Z, and even overconfident high earners, the report paints a sobering picture of a country that is technically “covered” but practically exposed.
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Rising risks make inadequate insurance a ticking time bomb
With rising medical inflation, job uncertainty, and claim complexities, this growing protection gap is more than a policy issue.
Employer-provided cover is not enough
Many still rely on employer-provided group insurance, which may lapse post-resignation and often lacks critical illness or top-up features.
Rural India still struggles with awareness and clarity
In rural India, awareness remains low. While bundled schemes like PMJJBY and PMSBY have improved coverage rates, most respondents are unclear about policy benefits, claim processes, or exclusions, the report revealed.
Insurance is about dignity, not just disaster coverage
“Insurance is not about death or disease. It’s about dignity. When you buy insurance, you’re not betting on bad luck, you’re securing your family’s future choices. On this Insurance Awareness Day, we urge every Indian to stop seeing insurance as a checkbox and start seeing it as a life plan,” said Sanjiv Bajaj, Joint CMD, Bajaj Capital.
India needs deeper, smarter insurance adoption
“India is insuring itself but not fast enough and not deeply enough,” added Venkatesh Naidu, CEO of Bajaj Capital Insurance Broking Ltd. This report shows the disconnect between knowledge and action. Insurance needs to evolve into a transparent, tech-enabled, and advisor-backed experience to match today’s complex risks.
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Insurance coverage ≠ financial protection
The Suraksha Kavach Report serves as a timely reminder that insurance coverage does not always equal financial protection. As India’s economic and health landscapes become more complex, the country’s insurance ecosystem must evolve beyond product penetration toward awareness, adequacy, and accessibility.
Time for a mindset shift in India’s insurance journey
The findings urge insurers, policymakers, and individuals alike to re-evaluate how insurance is understood, purchased, and used—not just to meet regulatory checkboxes, but to truly protect lives, incomes, and futures.
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