Mumbai, May 2, 2026 — Indians are increasingly opting for health insurance policies with sum insured of ₹1 crore and above, as rising medical costs, greater awareness, and favourable tax changes make high-value covers more accessible and attractive.
According to multiple insurers, the trend has accelerated in recent months. Customers are willing to stretch their budgets slightly to secure stronger financial protection against escalating healthcare expenses. Policies of ₹1 crore and higher now form a significant portion of new business for several leading players.
Drivers Behind the Surge
Medical inflation in India continues to hover between 11.5% and 14% annually, pushing treatment costs for critical illnesses such as cancer, cardiac procedures, and complex surgeries into tens of lakhs in top private hospitals. A standard ₹5–10 lakh cover is often inadequate in such scenarios, prompting many families to upgrade.
A key catalyst has been the relief on taxes. Earlier, an 18% GST on health insurance premiums added substantially to costs. Recent GST-related changes have effectively reduced this burden, with some policies now seeing near-zero tax impact. As a result, what previously cost ₹118 now effectively costs around ₹100, encouraging buyers to opt for higher coverage.
The premium gap between mid-tier (₹50 lakh) and high-value (₹1 crore) policies has also narrowed, making upgrades more feasible. Insurers report that customers are using the savings to add riders and boost overall protection.
Premium Costs and Examples
For a healthy 35-year-old male with no major comorbidities, annual premiums for a ₹1 crore cover typically range from ₹18,000 to ₹25,000. This affordability, combined with tax benefits under Section 80D (deductions up to ₹25,000–₹50,000 depending on age and family), has boosted demand.
What Insurers Are Seeing
- Star Health and Allied Insurance: Policies of ₹1 crore and above now account for about 25% of new business in FY26, up 7–8 percentage points from the previous year. The company notes strong upselling in the retail segment.
- Niva Bupa Health Insurance: More than 20% of new business comes from ₹1 crore+ policies, a sharp rise from around 5% earlier.
- HDFC ERGO: There is growing interest in ₹1 crore covers and even global policies up to ₹5–10 crore. Customers are leveraging tax savings to increase coverage by 20–30%.
The New Normal in Health Protection
Experts view ₹1 crore as increasingly becoming the baseline for adequate protection rather than a luxury. With medical costs continuing to rise, base covers combined with super top-up options offer a practical way to achieve high sum insured at reasonable premiums.
This shift signals a broader change in how middle-income families and professionals approach financial security. Greater awareness post-pandemic, coupled with economic pressures, is driving people to prioritise comprehensive health covers that can truly shield savings from unexpected medical emergencies.
Individuals considering an upgrade are advised to compare policies based on claim settlement ratios, hospital networks, waiting periods, co-pay clauses, and available riders. Consulting a financial advisor or using online comparison tools can help select the most suitable plan.
As healthcare costs climb and policy pricing becomes more consumer-friendly, the rush for higher health insurance covers is likely to continue in the coming months.
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