Pet insurance is emerging as a financial cushion as vet bills run into the millions

When Pronita adopted a rescued cat, she didn’t expect a veterinary illness to leave her with ₹1.2 million in bills. Her cat was diagnosed with FIP, a serious disease, and the treatment for about three months cost her about ₹1.2 million. The first round of diagnostic tests alone cost ₹8,000.

For Ms. Pronita, the experience showed how quickly veterinary expenses can escalate, especially when a pet needs longer treatment. This also prompted her to take a closer look at pet insurance, a product relatively unknown to many pet owners in India.

“As more pet parents begin to treat their animals as family members, the cost of providing medical care becomes an important consideration,” she said, recalling another rescued cat that was bitten by a dog and suffered serious injuries. The surgery alone cost around ₹60,000 to ₹70,000, followed by months of paralysis treatment, physiotherapy and medication.

“The financial burden can also start with what appears to be a routine check-up,” said Hyderabad-based doctor and pet owner Nabat Lakhani. In her experience, a human X-ray can cost around ₹200 to ₹500, while recently she paid ₹1,000 for each X-ray of an injured stray dog.

“Similarly, an LFT or KFT test that might cost around ₹200 in a string diagnostic lab or ₹600 to ₹700 in a larger lab for a human could cost ₹2,000 or more for a pet,” she said.

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Dr. Lakhani’s family cares for three stray dogs around their clinic. One of the dogs was seriously injured after a fight with other dogs. The family initially spent ₹7,900 on dressings and four X-rays at a veterinary facility. “When the dog was subsequently transferred to another facility, the treatment cost approximately ₹22,000 for three days, including dressing, saline and food,” she said.

This experience also influenced her own approach to pet insurance. Dr. Lakhani said she does not have insurance for her 11-year-old Labrador because she believes available coverage remains limited and pet owners may still have to shoulder a substantial portion of veterinary expenses themselves.

For pet parents facing these bills, insurance is emerging as a possible financial cushion. Pet insurance products available in India can cover expenses like surgery, hospitalization and specific illnesses.

Depending on the policy, owners can also opt for benefits covering OPD treatment, long term care, mortality, theft or straying and third party liability. However, the extent of coverage varies between policies.

General insurance company Bajaj lists 35 dog breeds in the small, medium, large and giant categories on its website that are eligible for pet insurance.

According to Sravanthi, co-founder of Hyderabad-based Petsfolio, rising costs of veterinary insurance have made pet insurance increasingly relevant, especially for owners of medium and large breeds and pets that may require expensive treatments.

“Conditions like hip dysplasia, bone problems and accidental injuries can result in hefty veterinary bills, while medical costs can further increase with medicines and convalescence. The policies her company deals with can provide surgery cover up to ₹3,000, hospitalization cover up to ₹50,000 and OPD cover up to ₹30,000,” she said.

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However, there is an important difference that pet parents may not be immediately aware of. Pet insurance doesn’t always work the same way as the cashless health insurance that many are familiar with. Ms. Sravanthi said the policies her company deals with generally operate on a reimbursement basis. “Petsfolio assists customers with documentation and claims, and refunds typically take about 15 to 20 days,” she said.

For Hyderabad pet Mukesh, the cost of veterinary treatment became real when his puppy contracted Parvo, a serious viral infection. The puppy’s condition was deteriorating and required intravenous treatment every 2 hours. The vet recommended an injection that could improve the puppy’s chances of survival, but it cost around ₹3,000.

Mr. Mukesh did not hesitate. “I said yes in that split second because for me, I just wanted to save my pet,” he said. The treatment ended up costing him about ₹40,000.

Mr. Mukesh heard about pet insurance shortly after he got his pets seven years ago. He recalled seeing a Bajaj insurance brochure at a diagnostic center but never bought a policy. He also believes that awareness of pet insurance remains low. “It’s not talked about enough,” he said, noting that pet insurance isn’t discussed enough even within the home parenting community.

Published – 22 Aug 2026 12:21 PM IST