Why Health Insurance is a Growing Concern in India


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In the past few years, health insurance has become a significant focus area for Indians. The rising costs of healthcare, increased prevalence of lifestyle diseases, and the COVID-19 pandemic have underlined the crucial need for a robust health insurance policy. The necessity of health insurance cannot be overstated, and we’re here to delve into why this concern is growing in India.

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1. Skyrocketing Healthcare Costs

Medical costs in India have been soaring at an alarming rate. From routine check-ups to complicated surgeries, the financial burden on patients has been heavy, making health insurance a dire necessity. Today, a mere hospitalization for a few days can lead to bills amounting to lakhs1. Thus, health insurance acts as a safety net, saving individuals from financial ruin due to unforeseen medical emergencies.

2. Rise of Lifestyle Diseases

India is witnessing a steady increase in lifestyle diseases such as diabetes, hypertension, and cardiovascular disorders. A 2020 study by the Indian Council of Medical Research (ICMR) revealed that non-communicable diseases (NCDs) are responsible for 71% of all deaths in the country2. Health insurance plans that provide comprehensive coverage for these conditions are, therefore, increasingly important.

3. COVID-19 Impact

The global pandemic of COVID-19 has highlighted the importance of having a sound health insurance policy like never before. With COVID-19 treatment costs reaching astronomical heights, many families without insurance coverage found themselves in difficult financial situations. Insurance providers responded by introducing COVID-19 specific health insurance policies, making people realize the urgency of health insurance coverage.

4. Increasing Awareness about Health Insurance

Thanks to numerous awareness campaigns by the government, NGOs, and private insurance companies, the understanding and perception of health insurance have significantly improved. People are now more aware of the benefits of health insurance and the risks associated with the lack of it. This shift in mindset is another reason why health insurance is a growing concern in India.

5. Government Initiatives

The Indian government has taken laudable steps to promote health insurance coverage, such as the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)3. This scheme provides health insurance coverage of up to 5 lakh rupees per family per year, benefiting more than 50 crore people. Such initiatives have brought health insurance into the spotlight, stressing its importance in securing the health of Indian citizens.


Given the rising medical costs, the prevalence of lifestyle diseases, the impact of COVID-19, increasing awareness, and government initiatives, it is clear that health insurance has become a growing concern in India. Health insurance provides not just medical but also financial security. Investing in a good health insurance policy is a crucial step towards safeguarding one’s health and financial well-being.

Note: Information is accurate as of the date of publication and is subject to change. The content provided here is for informational purposes only and should not be considered as financial or health advice.


  1. Medical costs
  2. ICMR study
  3. Ayushman Bharat