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Health insurance premium stable in Jul-Sep, says report

NEW DELHI: Premium for health insurance was largely stable during July-September, despite reports suggesting a rise in premium amid the pandemic, according to Insurance Price Index data for the third quarter of 2021, compiled by, an insurance web aggregator.

“The Health Insurance Price Index maintained tranquility with no change in the index value in Quarter 3, 2021. The Health Insurance Price Index has been persistent at Rs25,124 since Quarter 4, 2020. This is the result of no price hike in the 5 health insurance companies forming the part of the index,” the report said.

Naval Goel, founder and CEO,, said, “It is great to see that the prices have not increased despite the fact that the insurance industry was hit by record Covid-19 claims and losses. Although the pandemic has resulted in a higher incidence of claims, there is an increased awareness of the need for insurance amongst the Indian population which should provide the impetus to help the industry grow faster.”

The average payable premium by a 26-year-old across categories was Rs16,695 for Rs10 lakh sum insured, and Rs13,140 for a Rs5 lakh sum insured, highlighting the fact that premium does not increase proportionately with sum insured. From Rs5 lakh to Rs10 lakh sum insured, the premium rose 27% compared to a 100% increase in sum insured.

Also, adding members to the family floater policy does not increase the premium proportionately. In fact, there is a 50% increase of premium on an average on adding 1 more adult of the same age or lower age in the same policy. The increase is lower–11.9% and 13.7%–on adding first child and second child to the policy.

Of the five companies, comprising the index, the variance observed in premiums among health companies was quite high, ranging from 59-76% for different age groups compared to variance observed among term insurance companies. 

This is primarily because coverage, features, and benefits differ significantly for health insurance and term insurance.

Premiums reported were average compiled from five health insurance companies for all age groups – 26 years, 36 years, 46 years, and 56 years and all coverage types i.e, 1 adult, 2 adults, 2 adults plus 1 child, and 2 adults plus 2 children.

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