98% Indians buy health insurance for financial protection: Survey

Chennai: Indians predominantly buy insurance for tax-saving and investment purposes but are slowly recognising that it also means protection, said a new survey.

According to PolicyBazaar.com’s latest findings, 98 per cent of respondents purchased health insurance for financial protection against medical expenses.

Out of those surveyed, 24 per cent gave additional weightage to a combination of factors that include tax saving, personal events such as marriage and birth of child, said the report.

The online platform that aggregates insurance plans said it surveyed 5,600 existing insurance buyers to capture their attitude, perception, and behaviour towards insurance.

Under the health insurance findings, the survey said 45 per cent of participants were convinced that the employer provided cover is not enough to adequately cover their health needs. Nearly 40 per cent consider Claim Settlement Ratio as the biggest pull for them to choose a health insurer, followed by the network of hospitals, brand name, and recommendation by family and friends.

When it comes to life insurance, the findings showed that nearly six out of 10 participants bought term life insurance for financial protection.

Around 38 per cent of participants bought the cover for a combination of reasons, that included financially securing themselves, their families and tax saving, said the report.

Interestingly, the study says that one-third of those surveyed believed that the sum assured should be in the range of 10-20 times of their annual income.

Nearly five out of 10 participants were aware that term life insurance results in no payment if the individual survives the term, even as 30 per cent responded showed ignorance to if the payout will happen or not, it stated.

Under the motor insurance category, the report found that seven out of 10 motor insurance consumers bought insurance because it is mandatory for vehicle owners and it affords protection financial loss attributed to damage or theft of the vehicle

One-third of the respondents had bought motor insurance keeping third-party liability in mind, said the survey, adding that six out of 10 respondents were aware that lapsed motor insurance can be renewed online.

Also, one-third of the consumers believed that besides covering third party liability, it also gave protection against damage to own vehicle and theft, said the report.

NT Bureau