By Sanjiv Bajaj
It began on a rainy evening in Lucknow…
A 46-year-old college professor was driving home when a sudden, crushing pain gripped his chest. By the time his wife rushed him to the hospital, doctors confirmed it was a heart attack. Immediate angioplasty was the only option.
The estimate came quickly: Rs 4.8 lakh, payable before surgery. For context, in private hospitals across India, angioplasty costs typically range from Rs 2.5 lakh to Rs 5.5 lakh, with metros like Delhi, Mumbai, and Bengaluru averaging on the higher side (National Health Profile, 2023).
For a moment, his wife froze. Years earlier, during her father’s medical emergency, the family had sold a piece of land to pay bills,joining the millions of Indians who face catastrophic medical expenditure each year.
But this time was different.
Three years earlier, on a colleague’s advice, her husband had purchased a Rs 15 lakh comprehensive family floater health insurance plan. Within minutes of hospital admission, the insurer approved cashless treatment.
No frantic calls.
No pawning of jewellery.
No late-night scramble for loans.
“I could focus on my husband’s recovery, not the bill,” she later said. “That is real freedom.”
The Silent Crisis of Medical Debt in India
India’s healthcare progress hides a financial fragility. According to a 2023 NITI Aayog report, 17 per cent of Indians are pushed into poverty each year due to out-of-pocket medical expenses,one of the highest rates in Asia.
The National Health Accounts (2023) revealed that out-of-pocket expenditure still accounts for 47 per cent of total health spending in India, far above the global average of ~18 per cent.
And it’s not just life-saving surgeries:
- Dengue hospitalisation in a private facility can cost Rs 80,000–Rs 1.5 lakh.
- Pneumonia treatment can cross Rs 1–2 lakh for a week-long stay in metros.
- Cancer treatments and dialysis can run into several lakhs annually.
Without adequate insurance, these costs often lead to selling assets, delaying children’s education, or taking on high-interest loans,sometimes at 18–24 per cent p.a.
Also Read : Simple Habits, Big Gains: Your Step-By-Step Guide To Financial Wellness
Closing Your Own Coverage Gap
Here’s how to ensure you never face that moment of helplessness:
- Adequate Sum Insured – For a metro family of four, aim for Rs 10–15 lakh or more. With medical inflation in India averaging 12–14 per cent annually (Medibuddy Annual Health Cost Report, 2024), a Rs 5 lakh treatment today could cost Rs 8–9 lakh in just 5 years.
- Family Floater Advantage – A single policy covering all family members can be more efficient than multiple small covers, especially for younger households.
- Critical Illness Add-ons – These pay a lump sum for high-cost conditions like cancer, kidney failure, and heart ailments,where treatment costs can exceed Rs 20–30 lakh over time.
- Cashless Network – Check if your preferred hospitals are part of your insurer’s cashless network,reducing delays during emergencies.
- Annual Policy Review – Don’t “buy and forget.” Review sum insured, exclusions, and benefits yearly to keep up with medical cost trends.
Myths That Hold People Back
- “I’m young and healthy, so I don’t need it yet.”
Truth: Illnesses and accidents can strike anytime, and premiums are significantly lower when you’re younger. - “My employer’s cover is enough.”
Truth: Corporate policies often have Rs 3–5 lakh cover and lapse when you leave the job. - “Insurance never pays when needed.”
Truth: 98 per cent of health claims in India were settled in 2022–23 (IRDAI Annual Report), with most disputes arising from lack of awareness of policy terms.
Also Read : Debt Traps 101: What They Are And How To Climb Out
Insurance is Freedom in Disguise
Every August, we celebrate Azadi, freedom from fear and dependence. In today’s India, where a single hospital bill can undo years of savings, freedom also means having the confidence to face emergencies without risking everything you’ve built.
Health insurance can’t prevent illness, but it can protect your financial foundation,ensure uninterrupted treatment, a future still on track, and the peace of knowing you’ll never have to choose between health and financial survival.
That’s real independence,when your family’s dreams remain intact, no matter what life brings.
Get covered. Stay protected. Freedom from debt is the freedom worth having.
(The author is Joint Chairman & MD, BajajCapital Ltd.)
[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP News Network Pvt Ltd.]
