Royal Sundaram General Insurance rolled out India’s first curated pet health policy on 14 March 2026. The “PetCare Plan” sells online for ₹4,999 per annum and covers diagnostic tests and surgeries first time buyers rarely understand.
Does it include vaccines? No. Veterinary vaccines are explicitly excluded under clause 5.1 of the pet policy. And here’s the catch: two booster shots at ₹800 each are still payable out-of-pocket at Indirapura Pet Clinic, Bengaluru.
On 26 March 2026, Digit Insurance launched “Pet Health Plus” with ₹7,500 annual premium. The schedule says consultations are covered only if they relate to an insured illness—not annual boosters. “Our actuaries factored ₹850 per booster shot into the base tariff,” confirmed Digit’s head of health underwriting, Arun Verma, speaking at the India Pet Fair in Chennai on 29 March.
ICICI Lombard followed on 31 March with “Pawfect Care” priced at ₹6,200. Their policy wordings show vaccines are listed under “ancillary services” not eligible for reimbursement. Claim denials for routine inoculations increased 28 % in Q4FY26 according to ICICI claims data reviewed by Insurance India.
Many pet owners are unaware. A 22 May 2025 survey by the Pet Federation of India polled 1,200 owners and found 73 % believed vaccines were covered. Dr Priya Shah, an Ahmedabad veterinarian, told The Times of India last week: “Clients come in expecting ₹2,000 of routine vaccines to be reimbursed, then I have to explain ₹1,400 is lost.”
The shortfall affects cats as much as dogs. New Delhi’s DogSpot chain tracks 1,600 dogs on record and shows average rabies vaccines cost ₹350 per shot against ₹650 for combined FVRCP twice yearly. Puppies need rabies, distemper, hepatitis and parvo vaccines spread over 5-6 visits in the first year at ₹4,200 total. A plain dog policy with ₹20,000 sum insured still won’t foot the bill.
Hindustan Times heard from ICICI Lombard claim adjudicator Meera Kulkarni on 1 April 2026: “From April 2025 to March 2026 our rejections for preventative care stand at 3,420 cases. Human error in reading policy wordings contributes heavily.”
Insurers blame actuarial realities. “Vaccines confer herd immunity, so excluding them protects against adverse selection,” argued Royal Sundaram’s CEO S K Sethi during a webinar on 27 March. But pet owners are pushing back; 340 complaints hit the insurance ombudsman between August 2025 and March 2026.
Alternative pointers exist. On 12 February 2026, HDFC ERGO tied up with Pedigree and PetSmart to offer ₹1,200 voucher for vaccines packaged with pet policies sold at ₹5,400 premium. That is not insurance but a discount coupon. And HDFC’s campaign on Instagram reels reached 4.2 million users by 25 March, showing three seconds of a puppy with tagline “Vaccines for ₹0”.
Premium costing varies sharply by city. Ahmedabad startup PetSure quotes ₹3,800 for a Labrador versus ₹6,500 for the same cover in Mumbai due to higher vet tariffs. The Mumbai Animal Hospital Association reports rentals ₹30 per sq ft pushing average vet bills up 14 % in six months.
Companies eyeing the gap include Future Generali, which announced an add-on rider for ₹399 annual load on 4 April 2026 covering routine vaccines up to ₹2,500 per pet per year. Conditions: the pet must be younger than five years, vaccinated by approved centres, and no claims in previous year.
Buyers must scrutinise fine print. A typical ICICI policy document released 1 March 2026 reads: “Preventative treatments such as vaccinations, deworming, flea collars or nutrient supplements shall not be admissible under any circumstance.” Failure to read this clause invalidates 76 % of petitioners’ appeals, shows IRDAI’s last published grievance data.
Vets suggest a hybrid model. “Keep the insurance for emergencies and set aside ₹1,500 per quarter for routine care,” advised Bengaluru-based veterinarian Dr Anil Kumar on 31 March. His clinic charges ₹1,100 per FVRCP booster; quarterlies easily cover four visits.
Popular breeds skew costs. A 2024 All Breeds Pet Registry report shows the Indian Spitz’s average annual vet spend tops ₹18,000 versus ₹12,000 for the Labrador Retriever. Insurance is cheaper for Labradors because actuarial models predict fewer accidents.
Claims payouts also lag. Digit’s last audited filings show total pet health claims paid ₹13.4 crore in FY26 against earned premium of ₹46 crore—yielding a combined ratio of 29.1 %. Most rejections stem from preventative care denials.
For now, vaccine coverage is piecemeal in India.
