By IndiaHub 
Historically, social solidarity, extended family networks, and community assistance have served as informal safety nets in times of adversity. While these mechanisms were effective in a less complex economy, they are increasingly inadequate in the face of present-day risks.
The escalating costs of healthcare, and the growing frequency of extreme weather events have rendered informal support systems insufficient. A single episode of critical illness may require expenditure in the range of Rs 10–25 lakh; and nearly 48% of healthcare costs in India continue to be borne directly by households, among the highest proportions globally. Such vulnerabilities are inconsistent with the notion of true independence.
As Dr. B.R. Ambedkar observed, “Political democracy cannot last unless there lies at the base of it social democracy.” In our time, social democracy must encompass financial security, and insurance is a central pillar of that security.
Insurance: Despite its essential role, insurance in India is still often perceived as a statutory formality or a tax-saving instrument, rather than as a deliberate strategy for risk management. Many purchase inadequate coverage, select policies based on minimal premium outlays rather than adequacy of protection, and fail to review coverage over time. This approach exposes households and businesses to severe disruption when unforeseen events occur.
A well-structured portfolio of insurance products provides measurable and essential protections:
• Term life insurance safeguards dependants’ standard of living in the event of an untimely death.
• Health insurance mitigates the corrosive effect of medical inflation on household savings.
• Critical illness cover ensures liquidity during extended medical recovery.
• Property and business insurance preserves physical and productive assets from catastrophic loss.
These instruments are not discretionary; they are integral components of a resilient financial framework.
Government initiatives such as Ayushman Bharat and the Pradhan Mantri Jeevan Jyoti Bima Yojana have substantially expanded access to coverage. The digitalization of distribution and claims processes has improved accessibility and transparency. However, a large segment of the population, particularly in rural areas and the informal sector, remains uninsured or underinsured.
Shaping Independence 2.0
True independence is not the absence of risk, but the capacity to engage with risk without jeopardizing long-term stability. Insurance enables families to plan for higher education without worrying about health and life related hazards to the bread winner.
This Independence Day, let us recognize that freedom from risk is as essential as freedom from rule. While risk can never be eliminated, its capacity to inflict lasting harm can be decisively limited. Insurance is not merely a safeguard against loss; it is an enabler of progress, the structural support that allows us to build higher and the safety net that gives us the confidence to reach further. To truly honor the spirit of 1947, we must secure this freedom as well.
The article is authored by Lokanath P. Kar, Founder, ElpeeCo.