Health Insurance Sector Growing Rapidly

The health insurance sector in India is expanding rapidly, with premium income growing by 9 percent in the 2024–25 financial year, crossing ₹1.2 lakh crore. The Union Finance Ministry stated that increasing awareness about health insurance and the need for financial protection during medical emergencies are driving this growth. To improve service efficiency, the Insurance Regulatory and Development Authority of India has introduced timelines for cashless claim settlements, mandating approval within one hour and final claim decisions within three hours.

Meanwhile, health insurance premiums are rising due to factors such as ageing, enhanced coverage, and additional benefits. The Finance Ministry highlighted that insurance products should remain affordable while considering all associated risks, as per the guidelines issued in 2024. During 2024–25, a total of 137,361 complaints related to general and health insurance were registered on the Bima Bharosa portal, out of which 93 percent were resolved. Claim rejections may occur due to policy conditions, co-payment clauses, sub-limits, deductibles in top-up policies, and exceeding room rent limits.