New Delhi, July 31 -- Tata Consultancy Services Ltd's decision to cut roughly 12,200 jobs this fiscal year, largely impacting mid- and senior-level staff, is sending shockwaves through India's IT sector.

As the nation's largest IT services firm undertakes its biggest-ever lay-off in the company's history, driven by a shift to "future-ready" skills and aggressive AI adoption - job loss insurance, once a niche product, is suddenly back in sharp focus.

Job loss insurance offers individuals the financial security that helps them meet essential expenses during periods of involuntary unemployment, acting as a crucial bridge until alternative employment is secured.

It helps to cover financial obligations such as loan repayments, rent, utility...