Rising cost of weddings prompts families to seek insurance cover

Indian weddings are becoming longer, grander, and far costlier. With multi-day celebrations, destination venues, high-value jewellery, and rising vendor charges, families are increasingly opting for wedding insurance to shield themselves from unexpected losses.

Financial advisor Saranya Kumar says insurance has evolved into “a smart risk-management tool,” especially when large advance payments and valuable ornaments are involved. Even a minor disruption, he notes, can create major expenses.

Industry projections estimate around 46 lakh weddings in 2025, with spending expected to reach Rs 6.5 lakh crore. Average budgets have climbed from Rs 20–25 lakh in 2022 to Rs 30–35 lakh today, while premium ceremonies often exceed Rs 1 crore. As costs surge, families are more aware of financial risks.

Wedding insurance usually covers cancellations or postponements caused by severe weather, medical emergencies, the death of a close family member, vendor failure, venue damage, or injuries during events. It also offers protection against jewellery theft and food-related issues.

Insurers are clear about exclusions too. Breakups, intentional damage, terrorism, pandemics, and dealings with unregistered vendors are generally outside coverage.

Premiums typically range between 0.2 and 0.4 percent of the total budget, but rates depend on factors such as guest count, jewellery value, location, and number of functions. Destination weddings in Goa, Jaipur, or Udaipur often attract higher premiums due to travel uncertainties and weather risks.

Kumar says insurance is particularly valuable for large weddings or those involving high-value jewellery. While smaller ceremonies may not justify the expense, for many middle-class families, it can make the difference between financial recovery and a prolonged burden.