A recent Tata AIG survey reveals a growing awareness among Indian employees about the importance of supplementary health coverage, yet a significant portion remains unprotected due to confusion and procrastination, risking financial stress amid job transitions and emergencies.
A new Tata AIG study suggests that India’s corporate workforce is worried about medical costs but still slow to act on that concern. The survey found that 84% of employees believe additional health cover beyond employer-provided Group Medical Cover is important, yet 45% still have no personal policy of their own. Nearly 75% said employer cover alone would not be enough in the event of emergency hospitalisation, underlining a gap between awareness and actual protection.
The biggest barriers appear to be procrastination and confusion. Tata AIG said a “will buy later” mindset was common, particularly among employees aged 28 to 34, while only 41% of respondents said they fully understood all the features and benefits of the cover offered by their employer. That matters because the study also found that 94% of respondents said unexpected medical bills create financial stress, making health care one of the most pressing money worries for salaried workers.
The issue becomes sharper during job changes. According to the survey, 88% of employees said uninterrupted health cover during a career transition is important, but only 40% were aware of solutions that can preserve protection between jobs. For many households, the risk is not just the loss of a pay cheque. The U.S. Department of Labor says workers should understand their health coverage options when employment status changes, while insurers such as Ameriprise Financial and Blue Cross and Blue Shield of Montana point to choices including COBRA, marketplace plans and special enrolment periods that can help bridge the gap.
The survey also found that the strongest reasons for buying a top-up plan were a higher sum insured, cover for family members and continuity during job transitions. That points to a broader problem in corporate India: employees may recognise that employer coverage has limits, but many still do not move quickly enough to fill those gaps. In a market where nearly 70% said they could sustain themselves financially for six months or less after losing a job, the delay could prove costly.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
