Health insurance premiums in India are rising: Here's why
Health insurance is getting pricier in India, with average individual premiums rising 23% between fiscal years 2022-23 and 2024-25 (a three-year period) and family floaters' average premium per person increasing over 18% to ₹7,020 in 2024-25 (between 2022-23 and 2024-25).
Even employer-sponsored medical benefits aren't spared, climbing by 15%.
Basically, whether you're paying on your own or through work, health care is costing more.
Medical inflation at 12-15% annually
According to Pankaj Chaudhary, the junior minister for finance, this jump comes down to rising medical costs, an aging population, bigger coverage amounts, and extra policy perks.
Industry estimates put medical inflation in India at roughly 12% to 15% annually and describe it as among the highest in Asia.
Even though health insurance now covers about 573 million people, only around 40% to 42% of Indians actually have it—so lots of folks are still at risk if they get sick.
Insurers still making profits from individual policies
Treatments for things like heart disease and cancer are pushing up claims.
Hospitalization costs for some conditions have risen sharply in recent years (notably across 2022-23 to 2024-25), contributing to higher claims.
Insurers are still making profits from individual policies, even though latest data show lower claims (despite claims having risen during the pandemic) — companies are still making profits on individual covers, but that hasn't translated into relief for people struggling with high premiums.