Archive · 19 Nov 2025
Government Considers Caps on Health Insurance Premiums, Tighter Disclosure Rules
The government is thinking about putting limits on how much health insurance can cost and making insurance companies tell customers more about their policies.
This is because health insurance prices are going up, and some people are not getting the money they should when they make a claim.
The government also wants to make the process of paying claims simpler and faster by using computers.
Government discusses measures to control rising health insurance premiums
Proposals include capping premiums, limiting agent commissions, and enhancing disclosure norms
Government pushes for digitization and streamlining of claim settlement process
Irda raises concerns over low claim payouts and may review commission structures
Medical inflation in India expected to rise to 11.5% in 2026
- Who
- The government, insurance regulator (Irda), industry executives, and hospital groups
- What
- Discussing ways to control surging health insurance premiums and improve claim settlement processes
- When
- Currently ongoing
- Where
- India
- Why
- To rein in rising health insurance premiums and improve the claim settlement process
Insurers
Hospital Groups
Reason for Rising Premiums
Insurers
Rising medical inflation, inconsistent billing practices, high-cost medical technologies
Hospital Groups
Thin margins compared to insurers
- Current Medical Inflation in India
- 11.5% (expected to rise to 11.5% in 2026)
- Current Agent Commission Limit
- 35% of gross written premium for stand-alone health insurers
- GST on Individual Health Insurance Premiums
- Reduced to zero