Rising healthcare costs emerge as top worry for India Inc employees: Tata AIG survey

An unexpected hospital bill has become a bigger threat to corporate India than the sudden loss of a job, a new report shows, exposing severe vulnerabilities in how urban professionals plan for medical emergencies.

According to a study titled The Corporate Health Protection Pulse 2026, released by Tata AIG General Insurance Company on August 10, rising healthcare costs have surpassed job security, loan obligations, and global economic instability to become the primary financial concern for corporate employees.

A staggering 94% of respondents admitted that unexpected medical expenses trigger acute financial stress, far overshadowing concerns around career stagnation or layoffs. The fear is further compounded by a widespread lack of financial resilience: nearly 7 out of 10 employees said they could survive for six months or less on their current savings if they lost their job. Only 12% believed their safety net could sustain them for more than a year.

The study highlights a sharp mismatch between awareness and action across corporate India. While 84% of respondents acknowledged the importance of holding personal health coverage alongside their employer-provided Group Medical Cover (GMC), nearly half — 45% — rely exclusively on their company plan.

A lack of awareness and a pervasive "will buy later" attitude were cited as the chief barriers preventing employees, particularly those in the 28-34 age bracket, from securing individual policies.

This protection gap becomes especially perilous during career shifts. Healthcare costs were identified as the single largest financial worry during job transitions, outranking lost income and EMI commitments. Although 88 percent of workers said uninterrupted health coverage during a job change is critical, only 40 percent were aware of insurance solutions that maintain continuous medical cover between jobs.

Even while employed, workers remain uneasy about their safety nets. Nearly 75% of respondents agreed that their employer-provided cover alone would prove inadequate in the event of an emergency hospitalisation. Moreover, only 41% reported being fully aware of the specific features and benefits included in their company plan.

When evaluating secondary top-up policies, respondents pointed to family protection as the primary driver, prioritizing higher sums insured, coverage for dependents, and portable protection during career transitions.

"Our aim with this study was to better understand how corporate employees perceive their employer-provided health insurance and to identify the gaps that continue to exist in awareness and preparedness," said Santosh Puri, Head of Retail – Health Underwriting at Tata AIG General Insurance. "While Group Medical Cover remains an important pillar of employee wellbeing, the findings show that many individuals are still uncertain about the extent of their coverage and whether it would be adequate during a medical emergency or a job transition."

"As healthcare costs continue to rise, we believe awareness and financial preparedness will become increasingly important. We hope these insights encourage employees to make informed decisions about their health protection needs and foster greater collaboration between employers, insurers and policymakers to build a more financially resilient workforce," Puri added.

The nationwide survey evaluated 748 corporate employees aged 28 to 55 across eight major urban hubs: Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Ahmedabad, Pune, and Kolkata. All participants were currently covered under an employer-provided group medical insurance policy.