MOHAMMAD ZIYAUDDIN
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Kolkata: The Covid-19 pandemic has changed the way Indians view health insurance, leading to a massive surge in policy purchases and coverage amounts. According to a report by insurance-tech platform Turtlemint, the total sum assured in India’s health insurance sector has jumped by 240% over the last five years.
"The increasing preference for higher sum assured and comprehensive coverage highlights a growing consumer focus on financial preparedness for medical expenses," said Dhirendra Mahyavanshi, Co-founder & CEO of Turtlemint, as quoted by Business Standard.
This shift reflects a growing trend of both existing policyholders and new customers opting for comprehensive health plans.
Health Insurance Market to Hit ₹2 Trillion by 2028
Health insurance premiums in Tier 2 & Tier 3 cities have surged by 73% since 2020, highlighting consumers' increasing willingness to invest in better coverage.
India’s health insurance market is projected to reach ₹2 trillion by 2028, according to GlobalData.
Why Are Health Insurance Premiums Rising?
Growing medical costs – Rising hospitalization and treatment expenses are pushing premiums higher.
Higher coverage demand – Consumers now prefer larger sum assured policies for better protection.
Air pollution impact – Reports suggest that in Delhi, health insurance premiums could rise by 10-15%, following an increase in pollution-related claims last year.
How Much Have Premiums Increased?
A survey of 17,914 respondents by Turtlemint revealed that many policyholders experienced steep hikes in premiums between 2021 and 2024:
| Premium Increase | % of Respondents Affected |
|---|---|
| 200% or more | 8% |
| 150% - 200% | 16% |
| 100% - 150% | 13% |
| 50% - 100% | 30% |
IRDAI Steps In to Protect Senior Citizens
With rising healthcare costs, IRDAI (Insurance Regulatory and Development Authority of India) has intervened to limit premium hikes for senior citizens.
Insurers are now restricted from increasing premiums by more than 10% for elderly policyholders without approval.
The Future of Health Insurance in India
With health insurance premiums rising sharply, policyholders must carefully review their coverage and premium changes. While higher premiums reflect better coverage, it also adds to the financial burden. Regulatory measures and increasing awareness will play a key role in shaping the future of India’s health insurance sector.
