More individuals and companies are seeking disability and income loss insurance coverage, leading to higher penetration rates, according to Mr Bhaskar Nerurkar, head of the Health Administration Team at Bajaj Allianz General Insurance.
He explained that rising living costs and greater awareness of financial security through insurance were driving this trend.
According to experts, 500,000 to 700,000 people in the country suffer from temporary or permanent disability each year due to the high rates of accidents and crippling diseases and lose their ability to work and earn a livelihood, reported Press Trust of India.
"The onset of disability often brings substantial healthcare expenses, making comprehensive insurance coverage crucial to prevent social and financial decline," said Future Generali India Insurance’s (FGII) chief distribution officer, Ramit Goyal.
A study titled 'Measuring the financial impact of disabilities in India' available on the National Institutes of Health (NIH) website, suggests around one-fifth (20.32%) of the household's monthly consumption expenditure was spent on out-of-pocket expenses for disability.
More than half (57.1%) of the households were pushed to catastrophic health expenditure due to one of their members being disabled. Almost one-fifth (19.1%) of the households that were above the poverty line before one of the members was treated for disability were pushed below the poverty line.
FGII recently launched a group health insurance product covering both temporary and permanent disabilities arising from physical or mental illnesses, accidents, and unforeseen events that result in income loss.
Continued support and favourable regulations from IRDAI can further boost the growth of disability insurance, Mr Nerurkar emphasised.