According to industry experts, the pet population in India has grown from 28.5 million in the financial year 2019-20 (FY20) to 39.2 million in FY25, and is expected to reach 60.5 million by FY30.
The pet insurance market in India was valued at approximately 3,152 crore rupees in 2025 and, according to forecasts, could grow to 9,478 crore rupees by 2034. This implies a Compound Annual Growth Rate (CAGR) of 12.60 percent between 2026 and 2034. The growing interest is driven by households in India increasingly viewing pets as family members. Insurance companies are responding to this by offering products that cover not only medical expenses but also risks such as liability, theft, and long-term care.
Amarnath Saxena, Technical Director of Commercial Affairs at Bajaj General Insurance, notes that although it is still an evolving category, it is showing steady growth. A notable step was the introduction of Bajaj General Insurance's My Family Complete product, which expands the concept of family to include domestic dogs and cats.
Reasons for Demand Growth
The growth in demand is explained by several factors. Firstly, owners increasingly consider their pets as family members, and according to Saxena, 'pet owners are more willing to invest in their health, well-being, and long-term care.' Secondly, a significant driver is the rising veterinary costs. Ramit Goyal, Distribution Director at Generali Central Insurance, points out that 'increasing costs for surgery, diagnostics, hospitalization, and specialized treatment prompt pet owners to seek financial protection.' Furthermore, increased disposable income allows for greater spending on pet care and insurance; Saxena adds that nuclear families and dual-income families are increasingly adopting pets and are willing to allocate resources for their upkeep.
What Pet Insurance Covers
Pet insurance includes coverage for surgical procedures resulting from injuries, illnesses, and fractures, as well as corresponding pre- and post-operative procedures. Hospitalization coverage for inpatient treatment in veterinary clinics is available, as well as payouts in case of animal death. There is also optional Outpatient Department (OPD) coverage, which can reimburse certain veterinary expenses.
Third-party liability insurance can cover legal responsibility arising from bodily injury, property damage, illness, or death caused by the insured pet, and may include allowable legal defense costs. Goyal emphasizes that 'pet insurance also provides coverage for terminal illnesses, loss and theft, long-term care, emergency pet care, and other types of coverage.'
Carefully Select Additional Coverages
Insurers are increasingly offering pet policies as modular products, so owners need to carefully select additional options. OPD coverage can be useful for animals requiring frequent vet visits, while coverage for terminal illnesses and long-term care is relevant for more serious or prolonged medical conditions. Third-party liability coverage is useful if an incident involving another person or property creates financial and legal responsibility. Emergency pet care coverage is helpful if the owner cannot look after the animal. Goyal clarifies that 'this coverage can reimburse boarding or care expenses when the owner or a family member is hospitalized for more than four consecutive days or passes away.'
How Much Coverage Will Be Sufficient?
Currently, insurers offer policy amounts ranging from 10,000 to 15 lakh rupees. Customers should choose the insurance amount based on their desired level of financial protection. Saxena advises: 'Customers should also consider the age, breed, lifestyle, and potential medical needs of the pet when selecting the coverage level.' Medical expenses and susceptibility to certain diseases can vary among different breeds. Owners must take into account veterinary costs, potential need for surgery or hospitalization, OPD requirements, and third-party liability risks.
The premium depends not only on the sum insured. It can vary depending on the type of pet, weight, location, current health status, and policy term. Arti Mulik, Technical Director of Universal Sompo General Insurance, states: 'The premium depends on factors such as age, breed, vaccination history, pre-existing conditions, and selected coverage types.'
It is important to read the fine print. The stated maximum sum insured does not necessarily mean the insurer will pay for every treatment. Mulik explains: 'Each section will have a maximum payout amount and limitations.' For example, surgical allowance may have a sub-limit within the overall hospitalization coverage, which can range from 30 to 75 percent. Therefore, customers must understand both the total insurance amount and individual sub-limits. Ashwini Dubey from Policybazaar advises: 'Pet owners should also check sub-limits, deductibles, and co-payment requirements, as these can significantly affect the amount payable when making a claim.' Waiting periods for each type of coverage must also be checked.
Exclusions are equally important. Mulik warns: 'Pre-existing or congenital conditions may be excluded. Cosmetic and planned procedures are not covered, as is intentional neglect.'
Keep Documents Safe
Proper handling of the claims process is as important as choosing suitable policy benefits. It is crucial to provide complete information at the time of purchase. Mulik insists: 'You must fully disclose your pet's current health status.' Pet insurance may offer cashless payment options, with co-payment, or reimbursement. Dubey reminds: 'This depends on the insurer, the network of veterinary clinics, and the policy terms. Do not assume that every pet insurance policy offers cashless treatment.'
Insured parties must notify about claims immediately and follow the insurer's established procedure. They are also obliged to keep original invoices and medical records. Providing an incomplete set of documents can lead to delays or denial of the claim.