Average health insurance premium for individuals up 23% in 3 years

NEW DELHI: The average health insurance premium for individuals shot up 23% between 2022-23 and 2024-25, putting pressure on the common man, although govt cited multiple reasons for the rise. In 2024-25, the premium was pegged at Rs 11,188 crore.

The increase is seen to be steeper since the Covid-19 pandemic as claims rose, but latest data showed that the companies are raking in profits on individual covers and lower claims are not translating into any gains for policyholders.

In case of family floaters, during the three-year period, the average premium per person is estimated to have increased over 18% to Rs 7,020 in 2024-25.

"Health insurance premiums generally increase year-on-year due to multiple factors, such as medical inflation, ageing of the insured population, higher sum insured and additional benefits opted by policyholders and enhancement in policy features," Pankaj Chaudhary, the junior minister for finance, told Lok Sabha on Monday.