Health insurance coverage expands in FY25 despite dip in policy sales
Health insurance coverage in India continued to broaden in FY25, even as the number of policies sold edged lower, according to the annual report of the Insurance Regulatory and Development Authority of India. The number of lives covered by general and health insurers rose to 580 million in FY25 from 573 million in FY24, while the total number of health insurance policies declined marginally to 26.5 million from 26.8 million.
Premium collection under the health insurance segment grew 9.12 per cent year-on-year to Rs 1.17 trillion, reflecting higher average ticket sizes and the growing dominance of group and government-backed covers. Health insurance business is categorised into government-sponsored schemes, group policies and individual policies. In terms of lives covered, 42.3 per cent were insured under government schemes, 47.4 per cent under group insurance and 10.3 per cent under individual policies.
Claims experience remained stable. During FY25, insurers settled 32.6 million health insurance claims, paying out Rs 94,248 crore. Net incurred claims stood at Rs 84,850 crore, up around 11 per cent from the previous year. The incurred claims ratio improved to 86.98 per cent from 88.15 per cent in FY24, indicating a modest strengthening in underwriting and claims management despite rising healthcare costs.
BIS issues voluntary standards to standardise hospital billing
The Bureau of Indian Standards (BIS) has issued new standards for hospital bills, aimed at improving transparency, readability and consistency in healthcare billing practices. The standards lay down formatting requirements, including the use of legible fonts, clear itemisation and the availability of bills in both physical and digital formats.
According to BIS, the standards provide sample formats for both summary bills and detailed itemised bills to guide hospitals and healthcare establishments. Bills may be issued in English as well as the relevant regional language, enabling better understanding for patients and their families.
The move is intended to address frequent disputes arising from unclear or inconsistent billing formats, particularly in cashless insurance and reimbursement-based treatments. “Adoption of the standards is expected to reduce billing-related disputes, enhance consumer confidence and support informed decision-making,” BIS said in a release.
The standards are voluntary in nature and do not impose mandatory compliance obligations. However, they are expected to serve as a benchmark for hospitals, insurers and regulators seeking greater transparency and standardisation in healthcare billing, especially as health insurance coverage and claim volumes continue to rise across the country.
Telangana government announces ₹1 crore accident cover for staff
The Telangana government has announced an accident insurance cover of ₹1 crore for 5.14 lakh regular government employees across the State. The announcement was made by Deputy Chief Minister Bhatti Vikramaka Mallu at a public meeting in Ramagundam.
The insurance cover is aimed at providing financial security to government employees and their families in the event of accidental death or disability. The scheme forms part of the State government’s broader welfare initiatives targeted at strengthening social security for its workforce.
At the same event, the Deputy Chief Minister also announced the launch of the Indiramma Housing Distribution Programme, under which the State plans to construct 4.5 lakh houses for the homeless. The housing programme will be implemented at an estimated outlay of ₹22,500 crore, with around 3,500 houses proposed in each Assembly constituency.
Addressing the gathering, Bhatti said the initiative would help ensure that economically weaker sections are able to live with dignity. The programme includes the provision of house sites for families who do not own land, alongside construction support.
The twin announcements underscore the State government’s focus on employee welfare and housing security as key pillars of its social development agenda.
Health insurance coverage expands in FY25 despite dip in policy sales
Health insurance coverage in India continued to expand in FY25 even as the number of policies sold declined marginally, according to the annual report of the Insurance Regulatory and Development Authority of India (IRDAI). The number of lives covered by general and health insurers rose to 580 million in FY25 from 573 million in FY24, while policy count fell to 26.5 million from 26.8 million.
Premium collection under the health insurance segment grew 9.12 per cent year-on-year to ₹1.17 trillion, reflecting higher average premiums and increased reliance on group and government-sponsored covers. Health insurance business is classified into government schemes, group insurance and individual policies.
In terms of lives covered, 42.3 per cent were insured under government-sponsored schemes, 47.4 per cent under group policies and 10.3 per cent under individual covers. Group insurance also accounted for the largest share of premiums at 52.3 per cent, followed by individual business at 39.7 per cent.
During FY25, insurers settled 32.6 million health insurance claims, paying out ₹94,248 crore. Net incurred claims rose around 11 per cent to ₹84,850 crore, while the incurred claims ratio improved to 86.98 per cent from 88.15 per cent in the previous year, indicating better claims management.
High-value cancer therapies need insurance support, says Immuneel CEO
High-value, one-time cancer therapies such as CAR-T cell treatment need to be brought under the health insurance umbrella to improve patient access, according to Immuneel Therapeutics CEO Amit Mookim. The company has partnered with healthcare crowdfunding platform Impact Guru and healthcare-focused lender CarePal Money to expand financing options for patients.
CAR-T cell therapy is a personalised treatment for certain blood cancers, particularly relapsed or refractory cases. While Indian manufacturers now offer the therapy at nearly one-tenth of global costs, the upfront expense—around ₹35 lakh—continues to limit access. Immuneel has tied up with around 60 hospitals across India and expects to have treated about 100 patients with adult B-cell Non-Hodgkin Lymphoma by March 2026.
Mookim said the company is in discussions with insurance companies and regulators to explore structured coverage for such “value therapies”. He noted that while the treatment involves a single infusion, it can eliminate the need for prolonged, lifelong treatment in eligible patients.
Healthcare financing has evolved, but lenders and insurers need to better understand emerging therapies and long-term outcomes, he said. Immuneel has shared clinical and cost data with financiers, who will take independent decisions on coverage and lending frameworks.
Immuneel is co-founded by Kiran Mazumdar-Shaw, Siddhartha Mukherjee and Kush M Parmar.
Linking credit with health cover is self-development finance, says CEA
Inclusive finance must be anchored within a broader ecosystem of healthcare insurance and social security to protect both borrowers and lenders, Chief Economic Advisor V Anantha Nageswaran said, emphasising that linking credit to health protection is not charity but a form of self-development finance.
Speaking at the Global Inclusive Finance Summit, Nageswaran said that loan defaults are often driven not by indiscipline or irresponsibility, but by unforeseen shocks, particularly health-related events. “Even well-designed credit cannot do everything on its own. When illness strikes, even a growing business can stumble,” he noted, underlining the vulnerability of small borrowers to medical emergencies.
He urged mainstream banks to move beyond a passive role in the formalisation of the economy and actively integrate proven borrowers from informal segments into their core lending portfolios. Citing the PM SVANidhi scheme, Nageswaran said street vendors have demonstrated credit discipline and growth potential, raising the question of whether banks are willing to extend overdrafts, insurance and working capital facilities to them.
The CEA stressed that micro borrowers should not remain confined to microcredit indefinitely, but should progressively gain access to wider financial products as their businesses grow. He added that timely payments and fair contracts are often more powerful tools for inclusion than credit alone, noting that “inclusive finance does not require heroic interventions, but consistent and equitable financial practices.”
