Health insurance continued to dominate India’s non-life insurance industry in FY25, accounting for over 41% of the more than ₹3 lakh crore in total premium collected, according to the Insurance Regulatory and Development Authority of India’s (Irdai) FY2024–25 annual report.
Health and Motor Segments
The gross direct premium income of the overall non-life insurance industry grew 6.19% year-on-year to ₹3.07 lakh crore in the previous fiscal. The non-life, or general insurance, industry comprises health, motor, marine, fire, crop and other miscellaneous insurance segments. The health insurance segment reported a 9.19% growth, retaining its position as the largest contributor to the non-life industry with total premiums of ₹1.18 lakh crore. However, this growth was slower than the 19.50% expansion recorded in FY2023–24.
General and health insurers together covered 58 crore lives under 2.65 crore health insurance policies during the year, excluding personal accident and travel insurance policies. Of these, 42.3% of lives were covered under government-sponsored health insurance schemes, 47.4% under group business, and the remaining 10.3% under individual policies issued by general and health insurers. The four public sector general insurers accounted for 36% of the total health premium collected, while private general insurers and standalone health insurers contributed 32% each. Group health insurance continued to account for the largest share of total health premium at 52.3%, followed by individual business at 39.7% and government schemes at 8%.
The motor insurance segment recorded an 8% year-on-year growth to ₹99,093 crore in FY25. The segment’s share in total non-life premiums marginally increased to 32.21% from 31.68% in the previous year. Fire and marine insurance emerged as the next largest segments in the non-life industry, reporting premium incomes of ₹24,242 crore and ₹5,504 crore, respectively.
Coverage Gaps
Despite growth in the health and motor segments, the overall penetration of the non-life insurance industry as a percentage of GDP remained unchanged at 1% in 2024–25, the same level as in 2023–24.