Rising healthcare costs have become the biggest financial concern for corporate employees in India, overtaking traditional worries about job security, according to Tata AIG General Insurance's Corporate Health Protection Pulse 2026. The survey found that 94% of respondents admitted that unexpected medical expenses trigger acute financial stress, with healthcare costs, hospitalisation, lifestyle diseases, family health coverage and inadequate emergency savings emerging as the top concerns among employees. Despite this concern, 45% of employees have no personal health insurance beyond employer-provided cover, highlighting a significant gap in financial protection. The findings reveal that healthcare costs have now overtaken job security and EMIs as the biggest financial worry for corporate India.
The findings reveal substantial financial vulnerability among salaried workers when employment changes. Nearly seven in 10 respondents said they could financially sustain themselves for six months or less if they lost their jobs, while only 12% said they could manage their finances for more than a year without employment. The survey covered more than 748 corporate employees aged 28-55 across major Indian cities including Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Ahmedabad, Pune and Kolkata, with all respondents covered by their employer's Group Medical Cover.
Despite having employer-provided health insurance, many employees remain uncertain about coverage adequacy during medical emergencies. Nearly 75% of respondents agreed that their employer-provided Group Medical Cover alone may not be adequate in the event of emergency hospitalisation. However, 84% said having additional health insurance beyond their employer-provided cover is important, though only 45% actually have any personal health insurance apart from their GMC. Awareness about existing employer coverage remains limited, with only 41% of respondents saying they were fully aware of all the features and benefits available under their Group Medical Cover. The study also found that only 40% are aware of solutions that ensure continuity of medical cover during job transitions.
The survey identifies potential vulnerabilities during employment changes, with 88% of respondents considering uninterrupted health insurance coverage during job change important. However, only 40% were aware of solutions that could help maintain medical cover during such transitions. Healthcare expenses were identified as the biggest financial concern during job transitions, ahead of loss of income and EMI obligations. Family protection emerged as the strongest reason for employees considering additional health insurance, with respondents ranking higher sum insured, coverage for family members and continuity of coverage during job transitions among the most important features. The study highlights that while a significant number of employees are satisfied with their GMC, they are not necessarily confident about the adequacy of the coverage during medical emergencies or job transitions.
According to Tata AIG General Insurance, lack of awareness and a 'will buy later' attitude were among the key barriers preventing employees from purchasing additional health insurance, particularly among those aged 28-34. Dr Santosh Puri, Head of Retail – Health Underwriting at Tata AIG General Insurance, noted that while Group Medical Cover remains important, many individuals are uncertain about coverage extent and adequacy during medical emergencies or job transitions. The findings suggest that having employer-provided health insurance does not necessarily mean employees have adequate financial protection, emphasizing the need for understanding GMC limits and ensuring continuity of coverage during employment changes. The study aims to better understand how corporate employees perceive their employer-provided health insurance and identify gaps that continue to exist in awareness and preparedness, with Puri adding that as healthcare costs continue to rise, awareness and financial preparedness will become increasingly important.
