Summary of this article
Health insurance premiums rose 9.19 per cent to Rs 1.27 lakh crore, per Irdai.
Health now forms 41.42 per cent of non-life insurance, aligned with Insurance for All 2047.
Average hospital bills of Rs 5–15 lakh push families toward higher health insurance cover.
Claims ratio stable at 85.34 per cent, with standalone health insurers at 68.06 per cent.
Health insurance premiums jumped 9.19 per cent to Rs 1,27,417 crore in FY25, according to the latest annual report by the Insurance Regulatory and Development Authority of India (Irdai) for FY 2024-25, with non-life business accounting for 41.42 per cent of this revenue.
This ties directly to the government’s “Insurance for All by 2047” target, as medical costs continue to climb by seven to 10 per cent annually. Families now face hospital bills averaging Rs 5-15 lakh per admission, making coverage essential for salaried budgets.
Growth Breakdown
Non-life total hit Rs 3,07,611 crore, up 6.19 per cent from the previous year. Health insurance led the pack with Rs 45,860 crore from public insurers, Rs 43,144 crore from private players, and Rs 38,414 crore from standalone health insurers. Motor vehicle insurance came in next at Rs 99,093 crore with 7.97 per cent growth and 32.21 per cent share. Claims ratio held steady at 85.34 per cent overall, with standalone health at 68.06 per cent.
The number of standalone health insurance offices also grew by 131 and reached 1,788, with 80 per cent in Tier 1 cities for easier cashless claims. Non-life policies rose 16.48 per cent to 3,91.35 million.
Life claims (sum assured) were settled for 97.82 per cent of cases, with the payout standing at Rs 33,697 crore. Total net incurred claims climbed 9.46 per cent to Rs 1,88,593 crore across the sector. Public sector claims ratio was recorded at 97.30 per cent, while for private insurers, the figure was 77.50 per cent. Management expenses accounted for 15.60 per cent of total premiums, according to the report.
1 December 2025
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Sector Numbers
Non-life profits reached Rs 13,154 crore, up from Rs 10,119 crore the previous year. Investment income grew 9.03 per cent to Rs 48,112 crore. Operating costs dropped 2.18 per cent to Rs 37,811 crore. Paid-up capital stood at Rs 43,390 crore by March 2025, while commission expenses totalled Rs 47,266 crore across the board.
What It Means for You
Hospital stays now average Rs 5-15 lakh, so aim for family floater covers of Rs 10-20 lakh along with super top-ups of Rs 25 lakh. Policyholders can also claim Section 80D tax benefits of up to Rs 50,000 for themselves and parents. If policyholders do not avail of no-claim bonuses, the sum insured can double over five years.
