Insurance companies are having a great time!
In the first 10 months of the current financial year, health insurance premium has crossed the Rs 1 lakh crore mark, which is 10 percent more than the Rs 90,785 crore raised in the same period last year. However, the increase in premium has been slow as compared to 20 percent in the last financial year.
This segment has the highest growth
Last financial year, people paid Rs 1.07 lakh crore as insurance premium. By january 2025, the premium reached Rs 1 lakh crore. This has been revealed by the data of non-life insurers. Not only this, the growth has been the fastest in the individual health segment, which increased from 13.5 percent to Rs 37,068 crore. This is 38 percent of the total premium. Group health insurance, which is usually bought by insurance companies for their employees, had the highest share of 53 percent. The premium in this segment increased by 12.4 percent to Rs 47,312 crore.
Premium of government schemes decreased
In contrast, the premium of government schemes like Ayushman Bharat Yojana has declined by 9.7 percent to just Rs 8,828 crore. Under this scheme, state governments either buy insurance or set up a trust for settlement of claims. In FY 2024, double digit growth has been registered in these three segments - government schemes, group insurance and individual policies. This year the total premium growth has come down to 10.4 percent. While after the revision of rates by insurance companies, there has also been an increase of up to 10 percent in policyholders. Here, in view of the sharp jump in premium, the demand for 18 percent GST exemption on health insurance has increased even more.
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