Why are health insurance premiums so high in India?

Customers of private health insurance policies in India have noticed a worrying trend – their premium costs are shooting up, and, going by the many stories on social media, rejection of claims is also on the rise. Add to this the 18% GST that is charged on premiums, and it is no wonder that many say they are choosing to not renew their policies altogether.

Healthcare remains one of those most expensive aspects of an individual’s life in India – with medical inflation rates at 14% and about 60% of the country using private healthcare services, the fear that one episode of illness in a family member could put the family in debt for years, is not unfounded.

So what are the regulations around the medical insurance sector in India? Why are health insurance premiums rising? Will the GST Council meeting next month decrease the rates and will this benefit customers? And is health insurance really the right model for universal health coverage in India?

Guest: Prof. Indranil Mukopadhyay, Professor and Health Economist, at OP Jindal Global University

Host: Zubeda Hamid

Edited by Sharmada Venkatasubramanian