59% of Indians delay personal insurance, rely on employer cover: Report

Most people buy insurance only after events like marriage, a health scare or changing jobs

Most Indians rely on employer-sponsored insurance coverage rather than proactively buying their own policies, said a private company’s survey on Wednesday.

 

Plum studied 10,000 personal insurance consultations and questioned 350 respondents for the survey. It found that 59 per cent of respondents did not have personal health policy and depended entirely on their employer’s plan. As many as 40 per cent of personal insurance policies bought through Plum in the last six months were triggered by a claim experience under an employer’s plan — a sign that good claim settlements can nudge people towards purchasing individual cover, said the insurance technology firm.

 

Group insurance is expanding as retail policies trail. “These insights reveal a trend that has been observed in developed countries, where employer-sponsored insurance and government schemes work hand in hand to drive insurance penetration,” said Abhishek Poddar, chief executive officer and cofounder of Plum.

 

Insurance trends

In the past six months, 54 per cent of Plum’s consultations saw either rejections or higher premiums. About 20 per cent of policies were rejected due to high risk, while 34 per cent faced premium hikes of 10 per cent to 50 per cent due to “pre-existing health conditions” like diabetes or hypertension. That is worrying given that 71 per cent of India’s workforce is vulnerable to chronic disease, according to Plum’s Employee Health Report 2025.

 

Almost 90 per cent of Plum’s customers drop maternity add-ons because of long waiting periods, even though most applicants are likely to be planning families.

 

The survey also sheds light on how Indians approach insurance on their platform:

 

• Only 25 per cent of buyers are women but men are more likely to shape their decisions. 
• 95 per cent opt for insurance cover of Rs 10 lakh or more, showing rising awareness about inflation in healthcare costs. 
• Parental coverage is a big driver, with nearly a quarter of customers buying policies specifically for their parents, often because employer cover excludes them.

 

Plum’s findings indicate that while awareness is improving, India still treats insurance as an afterthought. Most people buy insurance only after life events such as marriage, a health scare or a career shift.