New Delhi, March 16 -- Some months ago, a friend called me-relieved and exhausted in equal measure. His mother had just completed a long cancer treatment.

The total bill was Rs.38 lakh. He had done everything right: a base policy of Rs.20 lakh and a Rs.1 crore top-up with a Rs.20 lakh deductible. On paper, he was well covered.

What he had not anticipated was the process. It took four months to receive the full claim. There were repeated requests for documents. At one point, the top-up insurer temporarily declined the claim because the base insurer had not yet settled.

The claim was eventually paid. But the journey was far harder than expected.

In my previous column, I wrote about why top-up insurance is a cost-effective way to increas...