Health Insurance Sector Sees Strong Growth, Premium Revenue Exceeds Rs 1.2 Lakh Crore
Premium Growth and Market Expansion
India’s health insurance sector has experienced significant growth, with total premiums exceeding Rs 1.2 lakh crore in 2024-25, according to the government. The sector continues to expand steadily, growing at approximately 9 per cent annually. This growth is fueled by increasing awareness of health insurance, improved access to healthcare financing, and a growing need for financial protection against medical expenses.Streamlined Claims Processing
To enhance efficiency and expedite support for policyholders, the Insurance Regulatory and Development Authority of India (IRDAI) has implemented strict timelines for processing cashless health insurance claims. Insurers are now required to approve cashless pre-authorization requests within one hour, with final approvals completed within three hours. These measures are designed to reduce delays and ensure patients receive timely treatment.Claims Settlement Ratio Improves
The health insurance sector has demonstrated improvement in claims settlement. The claims paid ratio reached 87.5 per cent in 2024-25, an increase from 82.46 per cent in 2023-24 and 85.66 per cent in 2022-23.Grievance Resolution
Data from the IRDAI’s Bima Bharosa portal indicates that 1,37,361 grievances related to general and health insurance were reported in FY25. Approximately 93 per cent of these grievances were resolved within the same financial year.Common Claims Rejection Reasons
Despite improvements, some claims continue to be rejected due to policy-related conditions. These include exceeding the sum insured, co-payment clauses, sub-limits, deductibles, room rent caps, and non-medical expenses.Regulatory Efforts to Enhance Trust
The regulator has taken steps to improve transparency and streamline the claims process, aiming to build greater trust among policyholders and establish a more efficient and reliable health insurance system.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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