Non-life insurance premiums rose 10.5% in October, according to reporting by Business Standard. Health insurers led that growth.
This is an industry-wide figure, not a price hike on your own policy. Still, it shows demand for health cover is strong. Your next renewal bill may follow the same trend.
Key takeaways
- Total non-life premiums grew 10.5% in October, as reported by Business Standard.
- Health insurers led the growth.
- Industry growth is not the same as your premium going up 10.5%.
- Your renewal price depends on your age, health, city and claims.
- Compare plans before you renew, but don't cut your cover just to save money.
How non-life insurance premiums work
Non-life insurance means any cover that isn't life insurance. That includes health, motor, home, travel and crop cover. A premium is the money you pay the insurer for that cover.
When the industry's premiums grow 10.5%, insurers collected that much more than before. Such figures usually compare one month with the same month a year earlier. The headline doesn't say which comparison was used.
Three things can push premiums up. More people can buy policies. People can pick bigger cover amounts. Or insurers can charge higher prices. Reports like this don't split the growth into these parts, so don't assume it's all price hikes.
What changes for you at renewal
Say you pay ₹20,000 a year for a family health plan. If your premium rose by the same 10.5%, you'd pay ₹22,100. That's ₹2,100 more. This is only an example, because your insurer sets your price on its own.
| Premium rise | New yearly premium | Extra you pay |
|---|---|---|
| 0% | ₹20,000 | ₹0 |
| 5% | ₹21,000 | ₹1,000 |
| 10.5% | ₹22,100 | ₹2,100 |
| 15% | ₹23,000 | ₹3,000 |
Health premiums usually go up as you get older. Insurers also revise prices when hospital costs climb. So a rise at renewal is common, even without industry news.
Who is affected
- Health policyholders: Your renewal bill may rise, mostly if you're older or have made claims.
- Motor owners: Car and bike cover is non-life too, so check your renewal quote.
- Small shop owners: Fire and property cover falls in this group as well.
- First-time buyers: Buying early usually costs less than buying later.
What to do now
You don't need to panic. A few calm steps will protect both your cover and your wallet.
- Note your renewal date and ask for the quote about 30 days early.
- Compare two or three plans with the same cover amount.
- Look at waiting periods and room-rent limits, not just the price.
- Consider a top-up plan if you want bigger cover at a lower cost.
- Never let the policy lapse. A gap can restart your waiting periods.
If a hospital bill ever feels too big, a loan may be a short-term fix. Read our personal loan guides first. Then use the EMI calculator to see the monthly cost. Remember, a good insurance plan is almost always cheaper than debt. For more updates like this, visit our news hub.
Frequently asked questions
Will my health insurance premium go up by 10.5%?
Not necessarily. The 10.5% is for the whole industry. Your premium depends on your insurer, age, cover and claims.
Why are health insurers leading the growth?
The report says health insurers led, but the headline doesn't give reasons. Rising medical costs and more buyers are common drivers.
Can I switch insurers if my renewal looks too costly?
Yes, you can port a health policy to another insurer under IRDAI rules. Apply well before the renewal date, so your waiting-period credit carries over.
BankCreds analysis
This headline matters less to you than it sounds. A 10.5% rise in industry premiums mostly says insurers are selling more. It doesn't say what your own bill will be.
Take a 35-year-old paying ₹15,000 a year for health cover. Even a 10% rise adds ₹1,500. That's about ₹125 a month, which is small next to one hospital bill.
The bigger risk is too little cover
A ₹5 lakh plan can run out fast in a big-city hospital. A top-up plan often costs less than raising the base cover. That's a better use of your money than hunting for the cheapest quote.
This week, do nothing drastic. Check your renewal date. If it's within two months, ask for a quote now. Don't switch insurers only because of this news.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Business Standard — originating report https://www.business-standard.com/finance/insurance/non-life-insurance-premiums-rise-10-5-in-october-health-insurers-lead-126111301497_1.html
- IRDAI — Regulator that oversees insurers and health policy portability https://irdai.gov.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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