The India health insurance market size was accounted for USD 97.51 billion in 2024 and is expected to be worth around USD 315.84 billion by 2034, exhibiting at a compound annual growth rate (CAGR) of 12.47% over the forecast period 2025 to 2034.
The India health insurance market is primarily driven by rising healthcare costs, increasing awareness about health coverage, and government initiatives aimed at improving healthcare access. As medical treatment becomes more expensive, individuals and families are increasingly choosing health insurance to manage financial risks associated with hospitalization and chronic diseases. Additionally, the growing middle-class population, urbanization, and high prevalence of lifestyle diseases such as diabetes and high blood pressure are motivating more people to secure health coverage. The introduction of tax benefits under Section 80D of the Income Tax Act also plays a role in encouraging health insurance.
A significant driver of growth is the Indian government's robust effort to achieve universal health coverage through initiatives such as Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY). This program aims to offer free health coverage to more than 500 million economically disadvantaged Indians. A recent example of expansion in the region is the announcement by Niva Bupa in early 2024 to increase its network of cashless hospitals and invest in digital claim processing. This step not only enhances access but also demonstrates increasing competition and innovation in the private health insurance space.
What is Health Insurance?
Health insurance is a financial agreement that covers medical expenses for a person or group, either through direct reimbursement or cashless treatment in network hospitals. It protects policyholders from high out-of-pocket healthcare costs during illnesses, accidents, surgeries, or hospitalizations. In India, health insurance typically comes in various types: personal plans, family floater schemes, critical illness insurance, senior citizen health schemes, and group health insurance provided by employers. Health insurance options include preventive care, emergency services, maternity benefits, chronic disease management, and access to quality healthcare without financial burden.
Snapshot of India's Health Insurance Coverage & Trends:
| Metric | Value/Insight |
| Health Insurance Penetration (2023) | ~37% of total population |
| PM-JAY Coverage (Govt. Scheme) | ~500 million beneficiaries |
| Share of Private Sector (2023) | ~55% of total health insurance premiums |
| Number of Active Health Insurance Policies (IRDAI, 2023) | Over 50 million |
| Rural Health Insurance Coverage | Less than 25%, highlighting untapped potential |
| Digital Policy Sales Growth (YoY, 2023) | Over 30% |
| Employer-Provided Group Coverage (2023) | Covers ~12% of the insured population |
| Most Purchased Type | Family Floater Plans |
| Critical Illness Claims (2023) | Accounted for ~18% of total health insurance claims |
Surge in Digital Health Insurance Adoption
India's health insurance sector is undergoing a digital change driven by government-backed initiatives such as comprehensive smartphone use, UPI, and the India Digital Mission (ABDM). By March 2024, more than 568 million Ayushman Bharat Health Account (ABHA) IDs have been created, integrating over 350 million health records into the digital ecosystem. This digital shift is increasing accessibility and streamlining healthcare services across the country.
Prime Minister Narendra Modi highlighted the important role of technology in healthcare during the 78th World Health Assembly in Geneva, noting that more than 340 million telemedicine consultations have been conducted through India's free telemedicine service. This underscores the government's commitment to leveraging digital devices for better health outcomes.
Rising Demand for Mental Health Coverage
Mental health has become a focal point in India's health insurance landscape. According to a study by Policybazaar, mental health insurance claims have increased by 30–50% over the last 2-3 years. Additionally, mental health insurance claims in 2025 have surged by 41% year-on-year, reflecting heightened awareness and demand.
Despite this growing interest, challenges persist. Many insurance policies still exclude outpatient treatments, limit hospital networks, and impose strict coverage caps. Consumers are advised to carefully evaluate the extent of coverage, including outpatient services and therapy sessions, waiting periods, sub-limits, and insurers, along with the hospital and doctor networks before purchasing a mental health insurance plan.
Expansion of Government-Sponsored Health Schemes
The government's initiative plays an important role in expanding health insurance coverage in India. Ayushman India-Pradhan Minister Jan Arogya Yojana (PM-Jai) aims to provide free health coverage to more than 500 million economically weaker Indians. Recently, the Telangana state government enhanced the health card facility under its Rajiv Arogyasari Health Insurance Scheme, benefiting over 2,215 orphans, semi-orphans, and individuals below the poverty line (BPL) living in child care institutions in Hyderabad.
This initiative ensures cashless treatment of up to 10 lakhs for more than 1,835 procedures in over 90 public and private hospitals. Such expansion of government-sponsored health schemes is crucial in improving healthcare access for vulnerable populations.
Report Scope
| Area of Focus | Details |
| Market Size in 2025 | USD 109.67 Billion |
| Expected Market Size in 2034 | USD 315.84 Billion |
| Projected Market CAGR from 2025 to 2034 | 12.47% |
| Key Segments | Insurance Type, Coverage, Type, Level of Coverage, Age Group, Distribution Channel, End User |
| Key Companies | Star Health and Allied Insurance Co. Ltd., New India Assurance Co. Ltd., National Insurance Company Ltd., Oriental Insurance Company Ltd., United India Insurance Company Ltd., ICICI Lombard General Insurance Co. Ltd., HDFC ERGO General Insurance Co. Ltd., Reliance General Insurance Co. Ltd., Tata AIG General Insurance Co. Ltd., Bajaj Allianz General Insurance Co. Ltd., Niva Bupa Health Insurance Co. Ltd., Care Health Insurance Ltd. |
The India health insurance market is segmented into insurance type, coverage, type, age group, distribution channel, level of coverage, and end user. Based on insurance type, the market is segmented into private health insurance, family health insurance. Based on coverage, the market is segmented into preferred provider organizations (PPOS), point of service (POS), health maintenance organization (HMOS), exclusive provider organizations (EPOS). Based on type, the market is segmented into life-time coverage, term insurance. Based on age group, the market is segmented into senior citizens, adult, minors. Based on distribution channel, the market is segmented into direct sales, brokers/agent, banks, others. Based on level of coverage, the market is segmented as bronze, silver, gold, and platinum. Based on end user, the market is segmented into group and individual.
Private Health Insurance: It is sometimes known as personal health insurance schemes, these coverages are provided to individuals who require medical expense coverage. The schemes offer many benefits, including hospitalization, outpatient care, preventive services, and prescription drugs. Individuals can choose coverage that suits their specific health requirements based on age, medical history, or budget. These schemes are typically introduced by private insurers and are popular for their flexibility in deductibles, premiums, and coverage limits.
Family Health Insurance: Family health insurance provides coverage for the entire family under a single policy. It typically includes the self, spouse, children, and sometimes parents. These schemes reduce the administrative burden of maintaining multiple policies and often include features such as maternity benefits, children's vaccinations, and wellness rewards. It is a cost-effective solution for moderate-income families and is gaining popularity due to its collective benefits.
Others: This segment includes group schemes provided by Ayushman India and employee-based insurance, such as government-proposed plans. These are usually offered at low premiums or for free to certain income groups. Although coverage is often limited, such schemes are important for increasing health insurance penetration, especially in rural and economically weaker areas.
Preferred Provider Organizations (PPOs): PPOs allow policyholders to consult any doctor or hospital, but if they use network providers, they receive higher benefits or lower costs. These plans are preferred by urban policyholders who seek the flexibility of choice while enjoying lower costs through network providers.
Point of Service (POS): POS plans combine the features of PPOs and HMOs. Patients select a primary care doctor (PCP) and need referrals for specialist care. This ensures managed care with slightly more flexibility than HMOs. POS is mostly used in employer-sponsored plans.
Health Maintenance Organization (HMO): HMOs limit coverage to care provided by doctors working for or contracted with the HMO. They typically require members to obtain referrals for specialist care. More affordable, HMOs restrict policyholders to a narrow provider network. They are less popular among urban Indians due to these limitations.
Exclusive Provider Organizations (EPOs): EPO plans offer services through a specific network of doctors and hospitals but do not require referrals. While they are less flexible than PPOs, they are more cost-effective. They are gaining popularity among cost-conscious customers in Tier 2 and Tier 3 cities.
Lifetime Coverage: This plan provides lifetime coverage, usually up to the age of 99 or beyond. It is ideal for individuals aiming to secure their later years. Lifetime coverage schemes are becoming more common with the growing awareness of the needs related to life expectancy and elderly healthcare.
Term Insurance: Term health insurance plans provide coverage for a specific period, usually one year, and are renewable annually. These policies are affordable and often used by young individuals or temporary workers. Term policies are frequently linked with other financial products, such as life insurance, and are continuously increasing in popularity due to their effectiveness and ease of access.
Bronze: These are the least premium plans with the highest deductibles, featuring entry-level coverage. They cover essential health services but have limited features. Bronze plans in rural areas and for low-income individuals provide financial security against key medical expenses without a significant out-of-pocket burden.
Silver: Silver plans offer moderate premiums and better coverage benefits compared to bronze. They strike a balance between costs and benefits and are popular among salaried medium-income groups. These schemes often include welfare benefits, telemedicine access, and annual health check-ups.
Gold: Gold plans have high premiums but provide low deductibles and comprehensive coverage. They are suitable for people with regular medical needs or chronic conditions. With better healthcare access, the adoption of gold plans in urban centers is increasing.
Platinum: Platinum plans offer the highest level of coverage with minimal out-of-pocket expenses. These plans target high-net-worth individuals or families who seek extensive care and services without financial stress during emergencies.
Senior Citizens: These schemes are specifically designed for people over 60 years, often featuring high premiums and coverage for pre-existing conditions. They include coverage for age-related diseases such as cataracts, joint replacements, and heart conditions. With India's aging population, the demand for senior citizen policies is continuously increasing.
Adult: Adult health insurance typically covers individuals between 18 and 60 years old. These schemes include maternity benefits, coverage for lifestyle diseases, and wellness features. It is the most targeted age group and forms the largest customer base in India.
Minors: Minor health insurance is usually part of a family floater policy and covers children under 18. This includes vaccinations, pediatric care, and hospitalization. It is rapidly gaining popularity among new parents in metro cities, who aim to secure their child's healthcare needs swiftly.
Direct Sales: Policies sold directly by insurance companies through websites, mobile apps, or brick-and-mortar branches. Digital platforms are booming due to their convenience, transparency, and the increase in online purchases after COVID.
Brokers/Agents: Insurance intermediaries who help customers choose the best plan. They remain prominent in Tier 2 and Tier 3 cities, where personal interactions are valued and awareness is low.
Banks: Bancassurance models allow banks to sell insurance products. Bundled policies that accompany reliable bank savings accounts or loans play an important role for customers.
Others: This category includes online aggregators, corporate tie-ups, and e-commerce platforms. They are rapidly growing, and tech-savvy consumers significantly contribute to market expansion among the urban population.
Group: Group insurance plans are provided to employees by employers. These are inexpensive, offer comprehensive coverage, and typically exempt members from medical tests. These schemes dominate the corporate sector and are expanding with the rise of startups and SMEs.
Individual: Personal policies are purchased independently by individuals. They provide more control and can be tailored to specific needs. With increased financial literacy, individual policy memberships are steadily rising in both large and small cities.
The competitive landscape of the India health insurance market is highly dynamic, featuring a mix of public sector undertakings (PSUs), private insurers, and standalone health insurance companies competing for market share. Major players such as Star Health and Allied Insurance, ICICI Lombard, HDFC ERGO, NIVA BUPA, and New India Assurance dominate the industry with new products, digital initiatives, and robust distribution networks. The region is seeking increased cooperation with digital health platforms and Insurtech startups to enhance customer experience and reach underserved areas. Additionally, government-backed schemes like Ayushman Bharat and regulatory support from India's Insurance Regulatory and Development Authority (IRDAI) have intensified competition by promoting product innovation and comprehensive insurance access.
Market Segmentation
By Insurance Type
By Coverage
By Type
By Level of Coverage
By Age Group
By Distribution Channel
By End User