Health insurance claims jump 21% in FY25, but settlements lag

Even as insurance regulator Irdai flagged concerns about the widening gap between health insurance claims and the amounts actually settled, the volume of claims filed continued to surge, with claims in FY25 rising 21.18 per cent, according to Irdai data. The total amount settled by insurers increased by only 12.88 per cent, it showed. This growing mismatch highlights rising healthcare costs, higher utilisation of health policies and possible inefficiencies or disputes in claim settlement processes.

In FY25, general and health insurers settled 3.26 crore health insurance claims and paid Rs 94,247 crore towards settlement of these health claims, Irdai said. In FY24, insurers settled 2.69 crore claims and paid Rs 83,493 crore towards settlement of health insurance claims with the incurred cl