Credit: Special Arrangement
In a world where convenience and accessibility shape consumer choices, insurance is also evolving to meet people where they are.
Much like a sachet of shampoo or a single-use packet of coffee, insurance can now be purchased in small, affordable formats tailored to specific needs. These are known as sachet insurance products, offering bite-sized policies that provide targeted protection for a limited period at a price that fits into everyday budgets.
Why sachet insurance matters
India’s insurance penetration remains modest, and a lot more needs to be done to achieve the dream of insurance for all by 2047. The protection gap is significant, underscoring the need for innovative and inclusive solutions that can expand the insurance industry’s protective umbrella to a broader audience.
Sachet insurance is one such solution. It simplifies access to financial protection, especially for those who may not be ready or able to invest in long-term or high-value policies. These products are designed to be easy to understand, quick to purchase, and relevant to real-life situations.
Everyday examples
Sachet insurance is already part of many people’s daily lives, often without them realising it:
Train travel: When booking train tickets through IRCTC, passengers can opt for travel insurance for just 45 paise. This provides coverage of up to Rs 10 lakhs in case of accidental death, with proportional benefits for disability and hospitalisation during the journey.
Air travel: Many domestic and international airlines now offer travel insurance during ticket booking. For a nominal fee, passengers can secure coverage for trip cancellations, baggage loss, medical emergencies, and flight delays. This small addition can make a big difference in times of disruption.
Cab rides: Ride-hailing apps offer optional ride insurance for a few rupees, covering accidents or injuries during the trip.
Mobile purchases: When buying a smartphone online, customers are often given the option to insure the screen against accidental damage. This sachet insurance provides coverage for repair or replacement costs, offering peace of mind at a nominal cost.
Seasonal health risks: During the monsoon, insurers offer disease-specific covers for illnesses like dengue or malaria. These plans are especially useful in high-risk areas and cover hospitalisation expenses at a minimal cost.
Festive season risks: Short-term cyber insurance is available during festivals like Diwali and Navratri, when online frauds tend to spike. Firecracker insurance is another example, offering protection against fire damage or third-party liabilities during celebrations.
Where to find them
Sachet insurance products are designed for simplicity and ease of access. They can be purchased through:
Insurance company websites and mobile apps
Online shopping platforms (e.g., during checkout for electronics or appliances)
Travel booking portals (IRCTC, airline websites, bus aggregators)
Ride-hailing apps
Digital payment platforms and wallets
Health and wellness apps
E-commerce marketplaces during seasonal campaigns
Insurance aggregators and brokers
These products typically involve minimal or no underwriting, making them accessible to a broad audience without requiring complex documentation or profiling.
Towards inclusive protection
These products serve as a gateway to financial protection, helping individuals experience the value of insurance in a low-risk, low-cost manner. Once familiar with the benefits, many customers are likely to explore more comprehensive coverage options by focusing on specific, contextual risks.
Whether it’s a short trip, a seasonal illness, or a festive hazard, sachet insurance provides timely, relevant protection. Its simplified structure, transparent terms, and affordability make it a powerful tool for financial inclusion. In essence, sachet insurance is not just about small policies; it’s about making protection personal, practical, and accessible to everyone.