2 Out Of 3 Indians Feel Insecure, Inadequately Covered When Faced With Unexpected Medical Bills: Report

A new consumer study reveals something many policyholders already suspect but don’t always confront until it’s too late, their health insurance not being quite as solid as they thought.

According to the survey conducted by Future Generali India Insurance in April 2025, nearly two out of three insured Indians say they felt vulnerable and financially exposed when they had to make a claim. The issue is less about what is covered in your health plan and more about what’s not and how little people actually know about their policies.

The survey, which polled 814 adults across metros and non-metros, paints a familiar picture: people buy insurance and feel somewhat protected but are caught off guard when the hospital bill arrives.

In fact,

- 61 per cent of those surveyed said they received a medical bill for more than they expected, only to find their policy did not cover as much as they thought it would

- Another 43 per cent were billed for something they didn’t even realise was not covered

- And 32 per cent landed up at hospitals outside their insurer’s network, and ended up paying the price for not checking

Is Your Health Insurance Inadequate?

There is a disconnect here, and it is a costly one. The report shows that only about a third of respondents said they fully understood what their insurance covers. This leaves a majority of policyholders at risk of going into medical emergencies with half-baked knowledge of the extent of their coverage. Many believe their plans are adequate, until real life proves otherwise.

It doesn’t help that healthcare costs are rising steeply. India’s medical inflation rate hit 14 per cent in 2021, one of the highest in Asia, and there’s little sign of relief.

In the survey:

- 78 per cent of people said they either don’t think their current plan is enough to keep up with these rising costs, or they’re simply unsure.

- 82 per cent said they are concerned about the financial strain of medical bills, mainly as inflation eats into coverage.

- There’s also the emotional toll. Picking a health plan is not a straightforward decision for most people, 81 per cent of respondents said they found it confusing, stressful, or even anxiety-inducing.

And unfortunately, those feelings often carry over to the claims process too, particularly when people realise their sum insured is not enough or that it doesn’t reset after one hospital visit.

Another recent report recently found that 75 per cent of health insurance buyers in the country have a sum insured of Rs 10 lakh or less. It further concluded that much of this coverage is not enough to cover for many basic to critical treatments today.

Interestingly, more than 90 per cent of policyholders said they would prefer a plan that automatically replenishes coverage after a claim, a sign that consumers are actively looking for flexibility and peace of mind, not just another policy document with fine print they can’t understand.

What should policyholders do?

In line with such customer needs, the insurance sector now has many options for policy buyers. For instance, those who seek automatic replenishment of their coverage amount after any medical claim can look for policies that have ‘Automatic Sum Insured Restoration’ or ‘Unlimited Sum Insured’ (SI) features.

However, there’s a fine difference between both these options. Automatic restoration provides an option for families or individuals who expect to need coverage for multiple unrelated hospitalisations in a year. Unlimited SI, on the other hand, is for those individuals who face a higher risk of requiring extensive medical treatment or those willing to pay a premium for absolute financial security.

Above the need to secure their financial future against medical emergencies, people today also must evaluate the adequate coverage they need.