New Delhi, March 26 India’s health insurance sector has recorded strong growth, with total premiums crossing Rs 1.2 lakh crore in 2024-25, the government said on Thursday.
India’s health insurance sector continues to expand steadily, growing at around 9 per cent annually, driven by increasing awareness, better access to healthcare financing and a rising need for financial protection against medical expenses.
To improve efficiency and ensure faster support to policyholders, the Insurance Regulatory and Development Authority of India has set strict timelines for processing cashless health insurance claims.
As per the norms, insurers must approve cashless pre-authorisation requests within one hour, while final approval must be completed within three hours.
These measures are aimed at reducing delays and ensuring patients get timely treatment, the government stated.
The rise in health insurance premiums has been attributed to multiple factors, including ageing policyholders, higher coverage amounts and improved policy features.
The regulator’s 2024 guidelines also ensure that insurance products are priced fairly based on risk factors, with regular reviews using data and customer feedback.
In terms of claims settlement, the sector has shown improvement. The claims paid ratio stood at 87.5 per cent in 2024-25, compared to 82.46 per cent in 2023-24 and 85.66 per cent in 2022-23.
Data from the IRDAI’s Bima Bharosa portal shows that 1,37,361 grievances related to general and health insurance were reported in FY25.
Of these, about 93 per cent were resolved within the same financial year, it added.
However, some claims continue to be rejected due to policy-related conditions such as exceeding the sum insured, co-payment clauses, sub-limits, deductibles, room rent caps and non-medical expenses.
The regulator has taken several steps to improve transparency and streamline the claims process.
These efforts are aimed at building greater trust among policyholders and ensuring a more efficient and reliable health insurance system in the country.
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