On World Health Day, TATA AIG General Insurance has highlighted a widening mismatch between rising health risks and financial preparedness in India, raising concerns over long-term healthcare resilience.
Insights from the insurer reveal that serious illnesses are no longer limited to older age groups, with heart disease increasingly affecting younger individuals. However, financial readiness remains low. A survey among doctors shows that 59% believe less than 40% of heart disease patients are financially prepared for advanced treatment. At the same time, claims data points to a sharp rise in critical illnesses, with lung cancer claims doubling in 2025. While smoking accounts for over 85% of cases, pollution, second-hand smoke and workplace chemical exposure are also contributing factors.
The financial burden is intensifying, with hospitalization costs rising by an average of 27%. The gap is more pronounced among women, who make up nearly half of the insured population but only about 20% have adequate coverage beyond ₹20 lakh, often insufficient for major illnesses.
In Guwahati, insurers and agents indicate rising awareness but limited uptake of comprehensive policies. Many consumers continue to opt for low-value plans, exposing households to significant financial stress. Experts stress that stronger awareness, higher coverage and proactive health planning are essential to address the growing protection gap.
