As India prepares for one of its busiest wedding seasons, with nearly 46 lakh weddings expected and spending projected to reach Rs 6.5 lakh crore, weddings are becoming grander than ever. The typical Indian wedding now features choreographed sangeets, lavish décor, and multi-day celebrations, often resembling Bollywood productions. With budgets crossing Rs 30-35 lakh and luxury ceremonies exceeding Rs 1 crore, families are investing unprecedented amounts into these events.
However, with such significant investments, the risk of something going wrong—whether it’s a sudden weather change, a key vendor failing to show up, medical emergencies, or a venue crisis—has led many to consider wedding insurance. This form of insurance is designed to protect families from unexpected disruptions that could cause financial loss.
Wedding costs have escalated rapidly over the past few years. In 2022, the average wedding budget ranged from Rs 20-25 lakh. This rose to Rs 25-28 lakh in 2023 and further increased to Rs 29.6-36.5 lakh in the following year. As weddings grow in size and expense, a single mishap can lead to severe financial loss. That’s where wedding insurance steps in.
Experts note that demand for wedding insurance has surged, driven by the increasing scale of modern weddings and the unpredictability exposed by the pandemic. Wedding insurance typically covers cancellations due to natural disasters like storms, venue damage, illness or death of a close family member, guest injuries, jewelry theft, and vendor no-shows. Some policies even cover food poisoning incidents and accidental damage to décor or attire.
While wedding insurance is gaining popularity, families should be aware of the exclusions. Wedding insurance doesn’t cover disputes between the couple, intentional damages, terrorism, pandemics, strikes, or cancellations due to protests (bandhs) or unlicensed vendors. Additionally, transport delays and postponements for non-covered reasons are excluded.
Premiums for wedding insurance generally range from 0.2% to 0.4% of the total wedding budget and are influenced by factors like guest count, number of functions, venue location, jewelry value, and whether the wedding is a destination event. Destination weddings, particularly those in locations like Goa, Jaipur, Udaipur, or international venues, often incur higher premiums due to weather risks and travel dependencies.
Experts recommend couples fully disclose event details, including venue, guest count, number of ceremonies, and jewelry value. Policies should be in effect before any function begins, and families should carefully review exclusions to avoid disputes during claims. High-value weddings stand to benefit the most from insurance, especially when a cancellation could result in losses of Rs 1 crore or more.
While wedding insurance is often seen as essential for high-net-worth individuals, it can also provide valuable protection for middle-class families spending a significant portion of their savings. In an industry worth over Rs 6 lakh crore, where budgets are continually climbing, wedding insurance offers peace of mind and protection against the unexpected.
