What pet insurance covers, how much it costs and the products on offer

Last year, Bengaluru-based Meenakshi Kohli spent nearly Rs 30,000 on the surgery of her Labrador, who had ingested a plastic bottle, resulting in gastro-intestinal blockage. It was then that she decided to buy a Rs 60,000 cover from Vetina Pawtect at Rs 3,924 a year.

This care and concern for pets, especially dogs, marks the successful transition of Indians from pet owners 10 years ago, to pet parents now. With higher disposable incomes, an increasing number of people are keeping and spending on pets: dogs as pets numbered 214 lakh in 2019, while there were 18 lakh pet cats, as per Statista. Little wonder then that India is the fastest growing pet care market in the world, according to Petext India Rs 21. It is expected to grow at 14% a year to reach $490 million (Rs 3,618 crore) by 2022.

This may also be the reason that pet insurance, a thriving industry abroad, is beginning to take off in India. “There has always been insurance for cattle and livestock, but with people spending Rs 70,000-80,000 a year on dogs, insurance for these pets is now picking up,” says Tarun Mathur, CBO, General Insurance and Cofounder, Policybazaar.

What is covered?
While insurers such as New India Assurance, United India Insurance and Oriental Insurance have been selling cattle insurance for years, new players have joined the race. Vetina Healthcare, in collaboration with Digit Insurance, launched Pawtect medical cover in 2018, while Bajaj Allianz General Insurance started offering insurance for dogs in August 2020. Though the public sector insurers offer only protection against death, the private players are covering both death and disease.

“Since 85% of Indian pet market is dominated by dogs, we decided to start with covers for dogs,” says T.A.Ramalingam, Chief Technical Officer, Bajaj Allianz. “We offer two primary covers for surgeries and hospitalisation, while there are six optional covers or riders, including OPD, terminal diseases care, lost or stolen dogs, and third-party liability,” he adds. Pawtect does not cover stolen or lost dogs and has no OPD cover. Oriental, besides death due to accident or disease, also covers entry fees for show dogs, and worldwide transit, and its coverage is similar to that of New India Assurance.

Pet covers on offer
What is the cost?

Bajaj Allianz has capped the cover size for surgery at Rs 50,000, for hospitalisation at Rs 10,000, while its third-party liability cover has two options: Rs 5 lakh and Rs 10 lakh. Pawtect, on the other hand, has fixed covers of Rs 40,000, Rs 60,000, Rs 1 lakh and Rs 1.5 lakh Bajaj Allianz New India Assurance Oriental Insurance Vetina Pawtect and one can choose from Red, Yellow and Blue Ribbon plans. The premium is determined by the breed, age, size and even gender (higher for females) of the dog. For New India, it is fixed at 5% of the sum insured, and for Oriental at 6% of the cover. You can get quotes from these insurers at www.bajajallianz.com/pet-dog-insurance. html and www.pawtectindia.com/, and can download application form for New India Assurance at www.newindia.co.in/portal/product/knowMore/RURAL/DG.

All insurers typically require some form of identification at the time of applying for the cover and can vary from colour photo and nose print to photo of microchip or RFID tag.

Exclusions & limitations
Insurers typically have a waiting period of 15-30 days before the cover starts, and the age limit for the pet is 8 weeks to 8 years, other than Bajaj Allianz, whose entry and exit ages vary from 3 months to 10 years. There is also a co-pay or deductible imposed by all insurers: 10% for surgery and hospitalisation in case of Bajaj Allianz; 20% of the dog’s market value or sum insured, for Oriental and New India Assurance. In case of Pawtect, if the pet is less than eight years old, Rs 1,000 or 5% of payable amount (whichever is higher) will be deducted. If it is over eight years old, 75% of admissible amount will be paid and 50% if the pet is over 10 years. Pre-existing diseases are also not covered by insurers, as are specific illnesses like distemper and rabies, which result in death of the pet.

So, should you buy a cover for your pet? “It is definitely advisable as people are spending more and more on pets these days. They not only cost more, but the medical costs are also rising, with an average surgery easily costing Rs 20-30,000,” says Mathur.