Health Insurance in India Fails to Reassure Majority, Survey Finds
| 2025-05-17
More than four in five insured individuals in India feel unsure about the adequacy of their health insurance, amid rising medical costs and complex claim processes, a new survey has found.
Over 80% of insured Indians feel uncertain about their health cover’s effectiveness, citing rising hospital costs, according to a new survey.
More than four in five insured individuals in India feel unsure about the adequacy of their health insurance, amid rising medical costs and complex claim processes, a new survey has found.
A recent survey conducted by Future Generali India Insurance has revealed that over 80 per cent of policyholders in India question the efficacy of their health insurance coverage. The findings reflect widespread concern over the financial impact of hospitalisation and medical treatments, which many feel their policies are not adequately addressing.
The survey, titledHealth Unlimited, was carried out among 800 individuals aged 25 and above who currently hold health insurance policies. It found that two out of every three respondents felt insecure and inadequately protected when filing claims, often due to unexpected expenses not fully covered by their plans.
“Rising cost of medical treatment is a cause of concern for a vast majority of people in India, despite having a health cover,” said Anup Rau, Managing Director and Chief Executive Officer of Future Generali India Insurance Company Ltd.
According to Rau, the data underscores an urgent need for more comprehensive and user-friendly insurance solutions in the country. The company cited India’s high rate of medical inflation as a major factor behind policyholders’ anxiety.
High Medical Inflation
India was reported to have one of the highest rates of medical inflation in Asia in 2021, according to the survey. At approximately 14 per cent, the rate was significantly higher than that recorded in China, Indonesia, or Vietnam.
This rapid escalation in healthcare costs has created a gap between the financial expectations of policyholders and the actual out-of-pocket expenses they face during medical emergencies.
The survey also highlighted that nine in ten policyholders view the “recharge” feature—where the insured sum is automatically reinstated after a claim—as an essential component of their health cover.
Industry Response
In response to these concerns, Future Generali has launched a new insurance offering, also namedHealth Unlimited. According to the company, the plan provides unlimited restoration of the insured amount from the second claim onward, aiming to protect consumers from the risk of exhausting their coverage in times of repeated or high-cost treatments.
“We have developed this plan to ensure that customers do not run out of coverage even during periods of frequent or large claims,” Rau explained. He added that the policy aims to provide “complete financial security” for families facing increasing medical bills.
Calls for Reform
The findings reflect a broader call for the Indian insurance industry to re-evaluate how health coverage is structured and communicated to consumers. Industry analysts have noted that while insurance penetration in India has increased, awareness and understanding of policy terms remain limited.
Many policyholders are unaware of coverage limitations, exclusions, and the detailed terms of their claims processes, leading to dissatisfaction during times of urgent need. Experts argue that clearer communication and more transparent policy structures could help rebuild trust.
Healthcare costs in India have been rising steadily, driven by inflation, demand for private care, and advancements in medical technology. According to the Ministry of Health and Family Welfare, out-of-pocket expenditure remains a significant burden on Indian households, often leading to financial distress even among those with insurance.
Insurance companies, including both public and private providers, have been under increasing pressure to offer products that cater not only to cost coverage but also to policyholder confidence and long-term financial planning.
While initiatives likeHealth Unlimited may offer some relief, the broader challenge remains: aligning consumer expectations with the actual benefits provided by health insurance in a rapidly evolving healthcare economy.
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