Lok Sabha Question No. 2691 (UNSTARRED), answered on 2026-03-09
Subject: Rise in Health Insurance Premiums
Ministry: FINANCE
Asked by: Shri Navaskani K

## 2691. SHRI NAVASKANI K:

Will the Minister of FINANCE be pleased to state:

- (a) whether Government is aware of the steady rise in health insurance premiums and medical inflation, if so, the details thereof;
- (b) whether meetings held by the Government with insurers and hospital groups have resulted in any concrete measures to control premium increases and improve transparency in claim settlement; (c) if so, the details thereof;
- (d) whether policy holders in Tamil Nadu have been disproportionately affected by premium hikes, claim rejections or delays in cashless settlements, if so, the details thereof;
- (e) whether proposed requirement of prior approval from the Insurance Regulatory and Development Authority of India for premium increases beyond 10 per cent is likely to be implemented across all policy categories, if so, the timeline thereof; and
- (f) whether the Government proposes any specific steps to protect middle-class and senior citizen policy holders in Tamil Nadu from unaffordable health insurance costs and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) to (c): Health insurance premiums generally increase year-on-year due to multiple factors such as medical inflation, ageing of the insured population, higher sum insured or additional benefits opted by policyholders, and enhancements in policy features. The average premium per person in respect of individual  health  insurance  business  during  the  last    3  Financial  years,  as  informed  by  Insurance Regulatory and Development Authority of India (IRDAI), is as under:

| FY      | Average Premium Per person (Individual Family Floater)   | Increase   | Average Premium Per person (Individual other than Family Floater)   | Increase   |
|---------|----------------------------------------------------------|------------|---------------------------------------------------------------------|------------|
| 2024-25 | 7,020.06                                                 | 3.35%      | 11,187.64                                                           | 9.95%      |
| 2023-24 | 6,792.69                                                 | 14.49%     | 10,174.95                                                           | 11.98%     |
| 2022-23 | 5,932.87                                                 | 12.09%     | 9,086.07                                                            | 16.30%     |

The sector regulator, IRDAI, has stipulated that insurers shall ensure that the premium rates are fair and not excessive, inadequate or unfairly discriminatory and provide value for money through regulations and circulars issued from time to time. Health insurance premiums generally increase year-on-year due

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 2691

ANSWERED ON MONDAY, 9 MARCH , 2026/PHALGUNA 18, 1947 (SAKA)

## Rise in Health Insurance Premiums

to multiple factors such as medical inflation, ageing of the insured population, higher sum insured or additional benefits opted by policyholders, and enhancements in policy features. Meeting was held on 13.11.2025 with insurers  and hospitals  where  it  was  advised  to  take  measures  to  make  healthcare affordable and accessible.

(d):  IRDAI  has  informed  that  there  is  no  specific  information  available  to  them  in  respect  of disproportionate premium hikes, claim rejections or delays in cashless settlements with respect to the state of Tamil Nadu.

(e): IRDAI has informed that the direction requiring prior consultation with IRDAI for premium increases exceeding  10%  specifically  applies  to  revisions  in  premiums  for  the  senior  citizen  segment  across individual health insurance products. IRDAI has also informed that at present, there is no proposal under consideration  for  mandating  prior  consultation  of  the  IRDAI  for  premium  increases  across  all  policy categories.

(f): Pradhan Mantri Jan Arogya Yojana (PMJAY) offers a health cover for secondary and tertiary care hospitalization. The scheme has been expanded to cover 6 crore senior citizens of age 70 years and above belonging to 4.5 crore families irrespective of their socio-economic status under PMJAY.

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