Inadequate health insurance cover emerging as major household financial risk: Care Health Insurance

Inadequate health insurance coverage is emerging as a major financial risk for Indian households, with medical expenses for serious illnesses potentially exhausting existing insurance cover and forcing families to dip into savings or take on debt, Care Health Insurance said.

The insurer noted that while close to half of India’s population is now covered under a health insurance or financing scheme, many families remain underinsured. Medical costs are also rising faster than incomes, increasing the gap between available insurance protection and actual treatment expenses.

According to the Union Health Ministry’s National Health Accounts Estimates, Indian households continue to finance 43.4 per cent of the country’s total health expenditure out-of-pocket. Care Health Insurance said the figure highlights the financial burden medical emergencies continue to place on families.

The insurer also cited the National Statistical Office’s Household Consumption Expenditure Survey: Health (2025), which indicates that out-of-pocket spending continues to account for a large share of hospitalisation costs.

Care Health Insurance said families should therefore ask not just, “Do I have health insurance?” but “Do I have enough?”

The company advised policyholders to review their insurance cover every year, understand exclusions and limits, avoid relying entirely on employer-sponsored insurance and consider super top-up plans for additional protection.