Healthcare costs top worry for corporate India

Corporate India's employees are facing a growing financial strain due to escalating healthcare costs, according to a recent survey. The Tata AIG's The Corporate Health Protection Pulse 2026 survey discovered that 90% of respondents cited unexpected medical expenses as a significant source of financial stress. Furthermore, 70% expressed concern about sustaining themselves financially for half a year or less in the event of job loss.

Eighty-four percent of those surveyed emphasized the importance of additional health coverage beyond employer-provided insurance, yet nearly half of the employees do not possess personal health insurance outside of their group medical cover (GMC) from their employer. Santosh Puri, head of retail-health underwriting at Tata AIG General Insurance, explained that the survey's objective was to comprehend how corporate employees perceive their employer-provided health insurance and to identify gaps in awareness and preparedness.

The survey highlights the mounting financial burden of healthcare on India's workforce and reveals that many corporate employees might not be prepared to endure an extended period of income loss. Hospitalization costs, lifestyle diseases, coverage for family members, mental health, and a scarcity of emergency savings were identified as the top five healthcare-related concerns among corporate employees.

Notably, the survey also uncovered a substantial awareness gap, with 88% of respondents considering uninterrupted health insurance during a job change as crucial, yet only 40% familiar with options ensuring continuous medical coverage. This indicates a need for increased awareness of insurance alternatives during transitions between jobs.

Puri also noted a protection gap, as 75% of employees believed that employer-provided GMC would not suffice during an emergency hospitalization. Just 41% of corporate employees claimed full awareness of all features and benefits of their employer-provided GMC, indicating a need for greater awareness of the coverage. The survey polled 748 corporate employees aged 28-55 years across major cities in India, all of whom were covered under a GMC policy provided by their employer.