Your daughter’s big day: Why wedding insurance deserves a look amid rising costs, risks

Weddings in India are getting bigger, brighter—and far more expensive. What was once a largely family-managed affair has now become a high-stakes, multi-day production involving luxury venues, elaborate décor, destination travel and hundreds of guests. As the scale rises, so does the financial risk, quietly giving rise to interest in an unlikely product: wedding insurance.

According to WedMeGood’s 5th Annual Wedding Report 2025, the average Indian wedding now costs around Rs 39.5 lakh. Destination weddings push that figure to Rs 58 lakh, while in cities like Jaipur, budgets can soar to nearly Rs 73 lakh. Delhi weddings average Rs 38 lakh, Bengaluru and Hyderabad about Rs 37 lakh, and Mumbai close to Rs 35 lakh. Overall wedding spending rose 8% year-on-year in 2025, underlining how quickly costs are escalating.

With so much money on the line, even a small disruption can cause serious financial pain. A sudden medical emergency, extreme weather, a venue issue or a vendor backing out at the last minute can derail months of planning and leave families staring at losses that are hard to recover. Yet, despite these risks, most weddings are still planned without any form of financial protection.

Tax advisory platform Taxology India recently drew attention to this gap. “With weddings becoming expensive and complex, insurance can cover cancellations, accidents and loss of valuables. However, low awareness and many exclusions mean families must carefully understand coverage, limits and fine print before buying,” it said in a post on X. The tax advisory has referred to an infographic published in Livemint.

The financial strain behind weddings is already visible. While many families rely on savings, about 15.2% now fund weddings through loans, borrowing an average of Rs 15.5 lakh for expenses such as venues, jewellery, décor and catering. Guest lists remain large—around 420 people for local weddings and 280 for destination celebrations—adding to logistical stress. Pre-wedding trips and honeymoons add another Rs 3.41 lakh on average.

This is where wedding insurance steps in as a potential safety net. Premiums (excluding GST) typically start at around Rs 7,000 for a Rs 10 lakh cover and can go up to Rs 55,000 for Rs 1 crore, depending on the scale and nature of the event. Policies usually cover multiple risks, including cancellation or postponement due to unforeseen circumstances, damage to property, personal accidents and public liability.

Many policies also protect high-value items such as wedding outfits, jewellery, ornaments and gifts. Third-party liability cover can help if a guest is injured or property at the venue is damaged, while some plans include burglary or theft cover for valuables kept in designated rooms or safes.

That said, wedding insurance is not a blank cheque. Policies come with strict conditions and exclusions. Claims may be rejected if jewellery is left unattended, unregistered vendors are used, vehicles are parked outside approved areas, or losses are not reported in time. Voluntary cancellations, negligence and incidents outside the insured venue are usually not covered.