Should you rely only on health insurance? The family paid Rs 15 lakh for cancer treatment after the claim was rejected. viral news

Last updated:February 21, 2026, 16:59 IST

This incident has raised a very important question whether it is right to be overly dependent on insurance claims.

The family spent the cancer treatment from their savings. (symbolic image)

Should you rely solely on health insurance for medical treatment or create your own emergency fund? A post shared on X left people divided on this question. While many argued that health insurance in India is a “scam”, others agreed that one should have an emergency fund to use in times of crisis.

The post discussed the story of a family that was able to arrange expensive cancer treatment for their mother, after their insurance claim was rejected because she already had thyroid problems. The woman who shared her ordeal said, “Mum diagnosed: Stage 3 cancer. Treatment cost: Rs 15 lakh. Insurance claim: Rejected (pre-existing thyroid). But they didn't panic.”

The family covered the cost of treatment with their saved money.

The family was able to arrange funds on their own. From the very first day of their marriage, they started setting aside Rs 12,000 every month. In six years, this habit helped him accumulate more than Rs 10 lakh. “From wedding day 1: Rs 12k monthly in 'Parent Medical Fund'. 6 years = Rs 10.2 lakh saved. Investment in liquid funds: increased to Rs 13.8 lakh. Plus FD: Rs 4.5 lakh. Total ready: Rs 18.3 lakh. Treatment done. Mother recovering. Rs 3 lakh left for follow-up care.”

According to the woman, the gist of this whole story is that “health insurance fails. Your own fund fails.”

Internet has mixed reactions to the post

Once his post gained attention on social media platforms, people had a variety of reactions. Some praised the family for their timely investment, while others advised otherwise. One user said, “This does not work in case of chronic/acute conditions. Also, you must understand that medical inflation is around 10-15% per annum. A better decision would be to invest in health insurance and still save the remaining amount in a health emergency fund. Buy health insurance with all the necessary declarations and the chances of claim rejection are significantly reduced.”

Another person shared his ordeal, saying, “My son was admitted as an emergency, paid out of pocket because it was an emergency, insurance denied it, saying we can't reimburse for diagnostic tests, but we can't figure out the problem without diagnosis, health insurance is a big scam now.”

A different person quipped, “Health insurance is the biggest scam in our country.”

Meanwhile, someone else suggested, “So don't take huge medical insurance from the same company. It's better to take a moderate amount of medical insurance… Take additional top-up insurance with a small amount. Invest the rest of the money as a hedge fund.”

Grok explains why health insurance claims may be rejected

One person also asked AI bot Grok if an insurance company can reject claims based on pre-existing disease. It replied, “Yes, in India, health insurance companies can reject claims if there is a thyroid pre-existing condition (PED) and it is not disclosed at purchase.

Non-disclosure often leads to a denial, as it violates policy terms. If declared: There is generally a waiting period of 2-4 years before coverage is granted for related claims. After that, it may be covered depending on the policy. Always disclose PEDs to avoid problems. Contact your insurer for specifics.”

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