CUSTOM MEDICAL COVER. Suited to age, lifestyle, and family dynamics | Photo Credit: Deepak Sethi

Healthcare in India is undergoing a fundamental transformation. Medical advancements, rising awareness, and a growing emphasis on preventive care are changing the way we experience health and healing. Yet, for many Indians, health insurance remains tied to what an employer provides — largely through corporate health insurance. Serving as a critical safety net for millions of employees, these group insurance plans provide coverage for hospitalisation and, often, extend to employees’ family members, offering financial relief during medical emergencies.

In a country where a major share of healthcare spending remains out-of-pocket, corporate health insurance plays an essential role in protecting household budgets and supporting employee well-being. Aon Global Medical Trends Report says that healthcare costs in India are expected to rise by 13 per cent in 2025. However, as healthcare expenses evolve beyond hospital walls — encompassing diagnostics, mental health care, lifestyle management, and digital consultations — the limitations of relying solely on employer-provided coverage are becoming more evident.

Individual cover is key

Health challenges today extend far beyond hospitalisation and discharge. According to a recent report by Apollo Hospitals, non-communicable diseases (NCDs) like diabetes and chronic respiratory illnesses account for a significant share of deaths in India. Managing these conditions requires continuous care — regular monitoring, medication, counselling, and lifestyle changes. Additionally, mental wellness demands ongoing support, often beyond hospital settings. In this context, relying solely on corporate health insurance is like carrying an umbrella that opens only halfway through a storm.

Comprehensive personal health insurance, on the other hand, offers benefits like annual health check-ups, OPD visits, health coach services and even alternative therapies such as Ayurveda or physiotherapy. While it may come with a higher premium, compared with basic corporate health insurance, it offers significantly more value — covering a wider range of services that support both treatment and preventive care. In the long run, it can prove more cost-effective, as it helps avoid larger medical expenses by keeping you healthier overall. Insurers also incentivise preventive lifestyles by offering rewards such as lower premiums, making personal health insurance more meaningful and rewarding.

Customisation

Modern personal health insurance is no longer a one-size-fits-all product. It allows for customisation based on age, lifestyle preferences, and family dynamics. A young couple planning a family may want maternity benefits, while an older individual managing diabetes may look for disease-specific coaching. With a mix of critical illness riders, super top-ups, and even global emergency covers, policyholders can assemble coverage as per their needs.

Technology is driving this shift as customer expectations evolve — making life easier with tele-consultations, digital claims, and AI-led underwriting. With initiatives like the Ayushman Bharat Digital Mission pushing for digitised health records, the future of care is not just efficient, it is also integrated and intelligent. At the same time, the Insurance Regulatory and Development Authority of India is encouraging the industry to build wellness-linked products and simplify offerings.

Building resilience

None of this is to suggest that corporate health insurance is obsolete. It remains an important employee benefit. But as life progresses — marriage, children, ageing parents, or increased health risks — so do our coverage needs.

Financial planners often recommend a diversified portfolio — equity for growth, life cover for dependents, and health insurance for medical security. But even within health insurance, the portfolio needs to evolve. A base corporate health insurance policy, supplemented with personal top-ups or a comprehensive individual plan, ensures broader protections.

Globally, insurers are embedding wellness into policy design. From wearables that track heart rates to rewards for meditation and sleep consistency, insurance is becoming more proactive and personal. In India, this shift is already underway. The demands of a younger, more digitally-savvy population will shape the next generation of offerings — those that blend protection with purpose.

(The writer is CEO, Aditya Birla Health Insurance)

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Published on June 22, 2025