'Scams, spam': Nithin Kamath's post sparks debate on mistrust in insurance

Problem is in products, processes and people 'being abandoned' when they want insurance most, say people

Nithin Kamath, cofounder of online broker Zerodha, has said “people simply don’t trust people who sell insurance”, blaming “scams and spam” for their thinking.

 

Many people supported Kamath’s comment on X, saying the mistrust is related to insurance products, processes, and even health care.

 

The problem stems from how insurance has historically been sold, experts have said. Policies are pushed aggressively by bankers, brokers and agents, often with commissions as the main motivation. The result:

 

• Overpromising at the time of sale. 
• Rejections or partial claim settlements later. 
• Fine print that allows multiple interpretations.

As one X user put it, "Indian customers expect companies to honour promises made with empathy. Instead, many feel abandoned when they need support most," he said.

 

 

Confusion for consumers

 

Other people argued that insurance documents are often riddled with jargon and appear to be intentionally confusing.

 

This complexity feeds mistrust. “Perhaps we don’t just distrust the people; we distrust the complexity we can’t easily understand,” a user noted in response to Kamath’s post.

Structural challenges

Some people said private equity firms holding large stakes in major hospital networks could lead to tension between the two sides, especially over settlement terms.

 

Combined with India’s rapidly ageing population, this structural shift could add more friction to the already fragile trust equation between insurers and consumers.

 

Kamath’s post prompted a debate on simpler insurance products, honest communication, and regulatory intervention.

 

As one user summarised, mis-selling, jargon and inconsistent claim practices have alienated Indians from insurance. Fixing that will take more than slogans, it will take genuine customer-first action.