India health insurers hit policyholders with 50% to 200% hikes

More than 7 in 10 respondents said costs climbed sharply between 2022 and 2025.

Health insurance premiums in India have risen sharply over the past three years, even as consumers report ongoing challenges with claims processing, according to survey data and regulatory figures.

A nationwide survey by LocalCircles found that more than 7 in 10 policyholders saw their premiums increase by 50% to 200% between 2022 and 2025. 

Of the 17,200 respondents to this question, 21% reported increases of 200% or more, whilst another 32% reported hikes of between 100% and 200%.

At the same time, claims experience remains uneven. More than 2 in 5 respondents who filed a claim in the past three years said their insurer either rejected it or only partially approved it for what they considered invalid reasons. 

Of 18,989 respondents, 15% said claims were rejected with invalid reasons, whilst 29% said claims were partially approved with invalid reasons.

Delays in claims processing also persist. Half of the 18,119 respondents who filed claims said it took between 6 and 48 hours for approval and hospital discharge, despite regulatory timelines requiring faster turnaround. 

Only 8% said claims were processed instantly.

Industry participants say some recent premium increases reflect the repricing of older or loss-making portfolios. 

However, there is currently no fixed cap on annual premium increases for other age groups.