Zerodha’s Nithin Kamath Warns: Most Indians Are Just ‘One Hospitalization Away From Bankruptcy’

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New Delhi: Nithin Kamath, co-founder of Zerodha has raised an important concern about financial vulnerability in India. He highlighted that many Indians are just “one hospitalization away from bankruptcy” and stressed the urgent need for comprehensive health insurance. Kamath advised people to choose insurers with a solid track of at least five to ten years and a claim settlement ratio  of 80-90 per cent to ensure they’re protected from financial strain.

He also suggested choosing insurers with a network of 5,000-8,000 hospitals and an incurred claim ratio of 55-75 per cent. This ensures that the insurer is financially stable and capable of providing long-term security.

Most Indians are just 1 hospitalisation away from bankruptcy. A good health insurance plan is mandatory. pic.twitter.com/9GzKpT6EE9 — Nithin Kamath (@Nithin0dha) August 30, 2024

India has one of the highest medical inflation rates in Asia, with costs rising by 14 per cent, according to a report by insurtech company Plum titled "Health Report of Corporate India 2023." The report also revealed that a shocking 71 per cent of workers pay for their healthcare expenses out of pocket, while only 15 per cent receive health insurance support from their employers.

There are also other issues such as getting insurance claims approved. 43 per cent participants in a survey by Local Circles, involving 39,000 participants across 302 districts, struggled to get their claims approved due to a lack of full disclosure of policy exclusions, ambiguity caused by technical jargon, and claims rejected due to pre-existing conditions.

Another challenge is getting insurance claims approved. A survey by Local Circles, which included 39,000 participants from 302 districts, found that 43 per cent of respondents had difficulty with claims. The issues stemmed from unclear policy exclusions, confusing technical jargon, and rejections related to pre-existing conditions.