One in Five: The Insurance Blind Spot of India's Working Women

India's financial landscape is evolving rapidly, with more women participating in the workforce. Financial literacy has also risen, and there is a focus on planning for the future. Yet, behind this progress lies an uncomfortable truth: only 1 in 5 working women in India have life insurance cover for themselves, according to the Suraksha Kavach Report 2025 by Bajaj Capital Insurance Broking Ltd. This surprising statistic exposes a deep and dangerous gender divide between income generation and income protection.

In a world where inflation, lifestyle diseases and rising medical costs threaten household stability, financial protection is no longer optional. It is essential. But for millions of Indian women, particularly those juggling professional responsibilities and family caregiving, insurance remains a blind spot.

The Gender Gap in Insurance: A Mirror to Society

The Suraksha Kavach Report 2025 lays bare women's situation in insurance landscape. Despite their growing roles in the economy, they are significantly less insured than men. Key findings include:

• Only 19 per cent of women have life insurance in their own name, compared to 49 per cent of men

• Only 22 per cent of women have ever filed a health insurance claim themselves, while over 70 per cent of men have done so

• A significant number of women reported finding insurance “too complex to act on”

• In many households, policies are purchased for women, not by them, stripping them of agency and awareness

This is not just an insurance gap but a financial autonomy gap as well. Despite being co-contributors or primary earners, many women do not take the driver’s seat when it comes to risk protection.

Real Stories Behind the Stats

Several independent studies over the years have echoed similar concerns:

• Max Life Insurance's India Protection Quotient (IPQ) 5.0 (2023) found that while overall protection awareness rose, urban women’s protection quotient remained below the national average, especially for term life insurance.

• A NITI Aayog report (2021) on women’s financial inclusion highlighted that although 77 per cent of women had bank accounts, less than 20 per cent engaged with insurance or pension products. These women are policyholders but not in charge of their finances or insurance.

• The UN Women India and IRDAI roundtable conducted in 2022 concluded that cultural conditioning of women as homemakers and a lack of gender-sensitive financial products were major reasons for low insurance penetration among women.

In essence, even financially literate women postpone, overlook, or undervalue insurance—often until a health crisis, death, or financial emergency strikes.

Why Are Working Women Underinsured?

Several systemic and behavioural factors fuel this protection gap:

1. Cultural Conditioning

Women are still conditioned to prioritise the needs of the family, be it children’s education, spouse’s career, or parents’ health, they have to put their household duties over their own financial well-being.

2. Ownership ≠ Awareness

Many women are covered under group or family policies, but do not understand their coverage, benefits, or claim processes. This makes them vulnerable in times of crisis. During the time of crisis, they become more of a liability than a useful asset, helping in decision-making due to lack of awareness of their coverage.

3. Communication Gaps

Insurance continues to be marketed in complex terms and English-heavy terminology. Lack of equivalents in regional or simplified language makes it tough for many women to understand insurance. Low digital fluency keeps many women out of the conversation.

4. Financial Dependence

In dual-income households, financial decisions are still often made by male family members. Insurance planning, even for working women, is rarely self-driven.

5. Lack of Tailored Products

There is a dearth of insurance products customised to women’s needs—like maternity add-ons, critical illness for female-specific diseases (e.g., breast cancer), or income-replacement plans post-childbirth.

The Cost of Delay: What’s at Stake?

When women don’t actively or separately insure themselves, the entire family becomes financially fragile. A sudden illness, accident, or untimely death of an uninsured working woman can:

• Derail their children’s education

• It can lead to high out-of-pocket medical expenses

• It can also force the family into debt

• Uninsured working women's untimely death may also cause long-term income loss

Moreover, the absence of insurance directly impacts a woman’s sense of financial independence and ability to make empowered life decisions.

What Needs to Change?

Closing the female protection gap requires a shift in perception along with massive changes incorporated in policy and product.

Here’s how we can start:

1. Awareness Campaigns for Women, by Women

Insurance education must be gender-sensitive, with real-life use cases in simple language. Peer-based storytelling must also be included to make it more understandable. Local female influencers, SHGs, and educators can play a powerful role.

2. Digital + Assisted Models

While women are warming up to digital tools, offline assisted journeys (especially in Tier 2/3 towns) remain crucial. Female advisors and agents can bridge the trust gap.

3. Customised Products

Insurers should offer low-premium, modular plans with female-centric features to promote women-centric insurance policies. Which includes maternity health riders, term plans with childcare income support, and critical illness covers, should be promoted.

4. Workplace Insurance Inclusion

Employers can ensure life and health insurance for all staff, especially female employees, along with optional policy upgrades and claims guidance.

5. Involving Women in Household Finance

Every family needs to involve women in financial planning. Insurance discussions should be as common as budgeting or investing conversations.

Conclusion: From Passive Protection to Empowered Resilience

As India strides towards financial inclusion and gender equality, women must be properly insured. It should not only be done at smaller levels but must also be a national priority. The insurance sector, government, employers, and households all share the responsibility of shifting the needle.

Because when a woman is insured, it's not just her future that is protected—it’s her family's, her community’s, and ultimately the nation’s.

The time to act is now. Because protection is not a privilege—it’s a right.