India’s health insurance sector crossed ₹1.2 lakh crore in premiums in 2024–25, growing around 9%, driven by rising healthcare awareness, higher coverage demand and regulatory improvements.

BulletsIn:

• Total health insurance premiums exceeded ₹1.2 lakh crore in FY 2024–25, marking strong growth momentum in India’s insurance sector
• Sector recorded around 9% growth, reflecting increased awareness, rising medical costs and demand for financial protection against health expenses
• Growth driven by ageing population, higher insurance coverage uptake and improved product features offered by insurers
• Insurance regulator IRDAI introduced timelines for cashless claims, including approval within 1 hour and final settlement within 3 hours
• Claims paid ratio improved to about 87.5% in FY25, indicating better claim settlement performance and reliability in the sector
• Around 1.37 lakh grievances reported, with nearly 93% resolved within the same financial year, showing improved grievance redressal
• Despite improvements, claim rejections continue due to policy limits like co-payment clauses, sub-limits and non-medical expense exclusions