June, 2026
India's health insurance sector continues to show strong growth, with total health insurance premiums
exceeding ₹1.2 lakh crore in 2024-25. The growth reflects a clear shift in consumer behaviour, as
more individuals and families are recognising the importance of financial protection against rising
medical expenses.
According to the Ministry of Finance, India's health insurance sector grew at around 9% in 2024-25.
This increase has been supported by improved awareness, wider access to healthcare financing, and a
growing need for protection against unexpected hospitalisation costs. For policyholders, this trend
highlights the importance of choosing health insurance plans that are not only affordable but also
suitable for their medical and financial needs.
A key development for customers is the focus on faster cashless claim processing. The Insurance
Regulatory and Development Authority of India has prescribed timelines for cashless health insurance
claims, with cashless pre-authorisation expected within one hour and final authorisation within three
hours. These timelines are aimed at reducing delays and ensuring that patients receive timely access
to medical care during hospitalisation.
The Ministry of Finance also noted that the claims paid ratio by number of claims improved to 87.50%
in 2024-25, compared with 82.46% in 2023-24. This indicates positive movement in claim settlements,
while also reminding customers to understand policy terms clearly before purchasing or renewing a plan.
Common reasons for claim disallowance or repudiation include exceeding the sum insured, co-payment
clauses, sub-limits, deductibles, room rent capping, proportionate charges, and non-medical expenses.
Therefore, customers should carefully review exclusions, waiting periods, claim conditions, room rent
limits, and coverage benefits before selecting a policy.
For insurance buyers, the message is simple: health insurance is no longer optional; it is a necessary
financial safety net. With medical costs rising and claim processes becoming more structured, choosing
the right policy can help individuals and families stay financially prepared during medical emergencies.
At Policies365, customers can explore and compare insurance options with greater clarity, helping them
make informed decisions based on their needs, budget, and coverage expectations.
Source: pib.gov.in
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