A Glance at the Evolution of Health Insurance in India

Experts from the healthcare industry will unanimously tell you that health insurance is the best care for India’s healthcare problems and the recent surge in premium for health insurance policies certainly conforms to that view. In spite of being a loss-making proposition for most insurers, for an industry that is only a couple of decades old in India, there is certainly a lot of optimism about its future prospects.

Read More

Policybazaar exclusive benefits
  • 30 minutes claim support*(In 120+ cities)
  • Relationship manager For every customer
  • 24*7 claims assistance In 30 mins. guaranteed*
  • Instant policy issuance No medical tests*

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Back
Find affordable plans with up to 25% Discount**
  • 1
  • 2
  • 3
  • 4

Who would you like to insure?

  • Previous step
    Continue
    By clicking on “Continue”, you agree to our Privacy Policy and Terms of use
    Previous step
    Continue

      Popular Cities

      Previous step
      Continue
      Previous step
      Continue

      Do you have an existing illness or medical history?

      This helps us find plans that cover your condition and avoid claim rejection

      Get updates on WhatsApp

      What is your existing illness?

      Select all that apply

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step
      Advantages of
      entering a valid number
      valid-mobile-number
      You save time, money and effort,
      Our experts will help you choose the right plan in less than 20 minutes & save you upto 80% on your premium

      Though health insurance came to India in the form of Central Government Health Insurance Scheme for government employees and the Employees State Insurance Scheme for employees in the private sector - but it was only in 1986 that the first health insurance product was launched in the country. Since then things have certainly changed and now along with the government-sponsored general insurance companies, there are 20 private sector insurance companies operating in India and offering their products.

       

      In 1986 when 'Mediclaim' was first launched by the Indian government it offered minimum and maximum health coverage of INR 15,000 and INR 5 Lakh respectively. Today the minimum sum assured by the public sector insurance companies is INR 50,000 and INR 1 Lakh for the private sector companies while 95% of the online health insurance policies the minimum sum assured is INR 3 Lakh.

      The cost of healthcare in India has grown at an exponential rate in the last decades or so, and any medical procedure that costs around INR 10,000 during the 80s and 90s now cost more than INR 50,000. Moreover, many treatment procedures like Angioplasty, MRI scan or CT scan were not even known during that time. Introduction of new and advanced technology has made the cost of medical procedures to soar, and with the arrival of the corporate hospitals, they have actually increased multifold.

      According to a report published by Marsh India medical inflation in India is currently pegged at just over 18% and consumers those once bought policies with of INR 1 Lakh sum assured are now willingly ready to pay premiums of INR 1 Lakh for policies that offer Rs 1 Crore as sum assured.

      In India, health insurance started only as a cover for individual citizens and their families and then it offered reimbursement for hospital treatment only. There were also sub-limits and caps on every single item covered by the policies. But, as health care started to evolve the sub-limits were removed during the 1990s and with an increasing number of private hospitals and improved life expectancy more and more people started to buy health insurance policies.

      Third party administrators were introduced by the Insurance Regulatory and Development Authority (IRDA) in 2001, which acted as the link between the hospitals and the companies and in turn allowed the insurance companies to offer cashless facilities on their products. The advent of the service sector, especially the IT sector contributed to the growth of group insurance and presently the number of health insurance in India has become more than double of the number of policies sold in the year 2003-04.

      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Health insurance articles

      Recent Articles
      Popular Articles
      10 Reasons Why Your Health Insurance Claim Can Get Rejected

      01 Dec 2023

      Health insurance plans add a layer of invisible protection against
      Read more
      Knee Replacement Surgery Cost in India

      30 Nov 2023

      Knee pain has become a very common ailment in India, with over 15
      Read more
      Kidney Transplant Cost in India

      30 Nov 2023

      Kidney disease has been growing at an alarming rate in India. As
      Read more
      How Can NRIs Save Taxes on Health Insurance in India?

      24 Nov 2023

      Health insurance is an essential buy for people in India as well
      Read more
      Is LASIK Surgery Covered by HDFC ERGO Health Insurance?

      21 Nov 2023

      The growing dependence on electronic gadgets has impacted
      Read more
      How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)?
      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal
      Read more
      Best Health Insurance Plans for Senior Citizens in 2023
      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance
      Read more
      10 Major Benefits of Ayushman Bharat Yojana
      Pradhan Mantri Jan Arogya Yojana (PM-JAY) is the second component under Ayushman Bharat Scheme. PM Narendra Modi
      Read more
      Does Health Insurance Provide Coverage for LASIK Eye Surgery?
      A vast majority of the Indian population is suffering from vision problems. For some of them, LASIK eye surgery is
      Read more
      Pre-Existing Disease (PED) Cover from Day One
      Pre-existing diseases (PED) are mostly expensive to treat as they are chronic in nature. Unfortunately, most health
      Read more

      top
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL