Are you relying only on employer health cover? Nithin Kamath says it may not be enough 

Many salaried employees assume that the health insurance provided by their employer is sufficient, but financial planners warn that relying only on corporate cover can leave serious gaps. From limited coverage and claim restrictions to loss of insurance after a job change, employer-provided policies may not offer enough protection when medical expenses rise.

The issue recently gained attention after Zerodha co-founder Nithin Kamath highlighted that most people underestimate the risks of depending solely on company insurance. He said many corporate policies are designed to control costs rather than provide comprehensive protection. “Most employer plans are negotiated on cost, not comprehensiveness… the policy that protects you when it actually matters is the one you own,” he said.

Hidden limits

One common problem with employer health insurance is the presence of sub-limits. These may cap room rent, which can indirectly reduce other reimbursements such as surgeon fees, procedure charges, and hospital expenses. As a result, the final claim amount may be much lower than expected.

Rising medical costs

Medical inflation in India is estimated to be around 14–15% annually, making hospitalisation increasingly expensive. A cover of ₹5–10 lakh may seem adequate in the early years of a career, but the same amount may fall short later, especially in metro cities where a single surgery can cost several lakhs. Corporate insurance limits usually remain fixed, while personal policies allow higher coverage and upgrades over time.

After job change

Employer health insurance is linked to your job. If you switch companies, take a break, or lose employment, the cover may end immediately. Buying a new policy later can also be difficult, because any illness developed during that period may be treated as a pre-existing condition, leading to higher premiums or waiting periods.

No tax benefit

Premiums paid by employers do not qualify for tax deduction. A personal health insurance policy, however, allows deductions under Section 80D of the Income Tax Act, reducing the overall cost of protection.

What can you do

Financial planners recommend using employer insurance as a secondary cover while maintaining a personal policy in your own name. This allows the no-claim bonus to grow and ensures continuous protection even during job changes.

With medical costs rising every year, relying only on employer health insurance may not be enough. Having an independent policy can provide long-term security, flexibility, and peace of mind when it is needed the most.