'Policies Are A Nightmare To Understand': Zerodha's Nithin Kamath On Health & Life Insurance

Insurance, may it be health or life insurance, has become central to planning personal well-being and finances over the years. However, while being the principle for 'planning ahead', it continues to be a convoluted paradigm, as many often struggle to get their due for the policies that they have paid.

Nithin Kamath On Insurance

Many times, health insurance claims get rejected. This, in fact, is not an issue limited to a developing nation like India but has been a contentious issue for many other major economies, particularly the United States.

While talking about the realm of insurance in India, Zerodha co-founder and its CEO Nithin Kamath took to X to share his thoughts.

In his post on the microblogging website, Kamath started with a piece of advice for those looking to chart out to improve their finances. "The first thing you should do when you are starting your personal finance journey is to ensure you have sufficient life and health insurance. If you have dependents, not having life insurance is a bad idea." Kamath said.

Talking about the declining interest in insurance among some, he further added, "Based on my interactions with folks, perhaps the biggest reason why they don't have life insurance is because the policies are a nightmare to understand with all sorts of jargon and hidden clauses."

Insurers Keep Changing Rules

The intricate clauses of these policies often lead to confusion and at times denial of rightful services, in the time of need.

He also highlighted the purportedly unreliable nature of insurance companies, that, according to him, shuffle and change the rules.

"Then there's the fact that insurers keep changing things. For example, I didn't know underwriting rules had become much tougher and rejections had gone up.", he added.

As per reports, India is the fifth largest life insurance market in the world's emerging insurance markets. In addition, this market is growing at a rate of 32-34 per cent each year.