Mumbai: An increasing number of Indians are opting for health covers of ₹1 crore and above, multiple insurers told ET, as rising medical costs, zero taxes on policy premiums and greater awareness push buyers to secure the strongest possible shield against disease that money can buy. Insurers say this trend has accelerated following GST-related pricing changes, with customers willing to stretch premiums to secure higher benefits.
At standalone service provider Star Health and Allied Insurance, policies of ₹1 crore and above now account for about a quarter of new businesses in FY26, up 7–8 percentage points from last year due to continued upselling in the retail segment.
Premiums for a ₹1-crore cover range from ₹18,000 to ₹25,000 for a 35-year old male with no history of systemic comorbidities. “We are clearly seeing a trend of upselling where customers are opting for higher sum insured and riders,” said Nilesh Kambli, CFO, Star Health Insurance. “From a customer’s perspective, what earlier cost ₹118 now effectively costs ₹100, so they are willing to stretch a bit more for higher benefits.”
“On high-ticket policies, 1 crore-plus covers now account for about 25–30% of new business,” said Kambli.
He added that while the GST cut has played a role, the price differential between Rs 50 lakh and Rs 1 crore policies is not very significant, while treatment costs continue to rise.
Similarly, Niva Bupa has seen a sharp jump.
“We are seeing a decisive shift toward higher-ticket health insurance covers, particularly in the Rs 1 crore+ segment where, currently, more than 20% of our new business comes from such policies, up from 5% with a base sum insured of Rs 1 crore and above,” said a spokesperson at Niva Bupa Health Insurance.
AFFORDABILITY QUOTIENT
The move toward larger covers is being aided in part by pricing dynamics. The differential in premium between mid-sized covers such as Rs 50 lakh and Rs 1 crore policies has narrowed, making higher coverage more accessible. Customers are also opting for add-on benefits, contributing to a 3–4% improvement in portfolio yields.HDFC ERGO General Insurance, which has about a 9% share of the health insurance market, is also seeing customers shift toward higher sum insured.
“We are seeing an increase in people asking for higher sum assured of Rs 1 crore and even Rs 5–10 crore global policies,” said Parthanil Ghosh, MD and CEO, HDFC Ergo. “The GST-related pricing impact has also nudged this shift, as customers feel that if they were earlier spending Rs 100, they can now stretch that to get 20–30% higher coverage.”
