How insurance helps you save money and secure future
With rising health risks, road accidents, and natural calamities, experts warn that being uninsured can leave individuals and families dangerously exposed.
By Anshul May 3, 2025, 11:14:47 PM IST (Published)
In a country where a medical emergency or accident can wipe out years of savings, insurance is no longer just a piece of paper—it’s your financial shield. Yet, most Indians still underestimate its importance.
With rising health risks, road accidents, and natural calamities, experts warn that being uninsured can leave individuals and families dangerously exposed.
Low insurance penetration, high financial risk
“Insurance is an essential part of comprehensive financial planning,” says Vivek Chaturvedi, CMO and Head of Direct Sales at Go Digit General Insurance.
But India’s non-life insurance penetration is still below 1%—much lower than in many emerging and developed countries.
The main reasons? Lack of awareness and limited accessibility.
As a result, many Indians face financial disaster when unexpected events strike.
Motor insurance: A road safety blind spot
India’s roads also tell a worrying story. Over 50% of vehicles don’t have mandatory third-party motor insurance, and many skip optional own damage cover.
“India sees nearly five lakh accidents every year,” Chaturvedi points out. Without proper insurance, motorists face not just damage to their vehicles but heavy financial and legal liabilities.
A comprehensive motor insurance plan, he says, can make all the difference in protecting drivers, passengers, and pedestrians.
Health insurance: A shield against medical bankruptcy
Health shocks can cripple a family’s finances. “Many Indians are just one serious hospitalisation away from bankruptcy,” warns Chaturvedi. Without a health cover, people often dip into savings or liquidate investments to pay hospital bills.
A good health insurance plan—with adequate sum insured—offers crucial protection against unforeseen medical costs.
Ajay Shah, Head of Distribution at Care Health Insurance, highlights the silent rise of liver diseases such as fatty liver, hepatitis, and cirrhosis.
“These conditions often go undiagnosed until it’s too late,” Shah says.
Health insurance today goes beyond hospitalisation to cover preventive check-ups, diagnostics, outpatient consultations, and advanced treatments.
For severe cases, it also includes expensive procedures like liver transplants and post-operative care.
Home insurance: Safeguarding your biggest asset
While many insure cars or health, few consider home insurance. “Your house is likely your most expensive asset,” says Chaturvedi. He advises homeowners to get coverage that protects both the structure and its contents, shielding them from fire, theft, and natural disasters.
Beyond financial coverage
Insurance is not just about money—it’s also about enabling access to advanced and holistic care.
Pradeep Kumar Sharma, Consultant Neurologist at Livasa Hospital Mohali, says patients benefit from both medical and emotional support.
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