Medical bills hitting ₹50 lakh? Why ₹1 crore health cover is the new essential for urban Indians

Over the last few years, the cost of quality healthcare has risen sharply, especially in private hospitals across metro cities. Treatments for critical illnesses like cancer, cardiac diseases, organ transplants, or even prolonged hospitalisation due to infections can easily run into several lakhs, depending on the complexity and duration of care. Medical inflation in India is estimated at around 14% per annum, significantly outpacing general inflation, and this trend is expected to continue.

In this context, experts say opting for an ₹1 crore health insurance plan can make a lot of practical sense, provided it fits into your overall financial planning. Today, many insurers offer high-sum insured plans at relatively affordable premiums by structuring them smartly — for example, through a base policy combined with a super top-up.

Bhaskar Nerurkar, Head – Health Administration Team, Bajaj Allianz General Insurance, says, "It is important, however, not to simply chase the highest cover. The key is to align the sum insured with your needs — your city of residence, age, family medical history, preferred hospitals, and lifestyle risks should guide this decision. For a young individual or a nuclear family living in a metro, an ₹1 crore plan offers a strong financial safety net without causing a significant dent in savings during medical emergencies. It also ensures access to better treatment options without worrying about capping, room rent limits, co-payments, treatment limits, or exhausting your cover mid-way through a critical illness."

Additionally, some insurers offer value-added services such as concierge assistance, wellness benefits, or personalised claims support for customers opting for higher sum insured plans like ₹1 crore, enhancing the overall experience beyond just the financial coverage.

Why are surgery costs increasing so rapidly?

According to the Policybazaar report, medical inflation in India has consistently outpaced general inflation, driven by several factors, as mentioned below.

● Inflation: Healthcare inflation has been higher than general inflation, contributing to the rising costs of treatments and surgeries.

● Technology & Equipment: Advanced medical technologies and the use of state-of-the-art equipment in surgeries like knee replacements (robot-assisted, minimally invasive techniques) or laser cataract surgery can push costs higher.

● Increased Demand: As the population ages, there is greater demand for surgeries like knee replacements and cataract procedures. The demand-supply imbalance also leads to higher prices.

● Hospital Infrastructure: High-end private hospitals offering top-tier services, luxury care, and premium amenities generally charge significantly more than government hospitals or smaller clinics.

● Medical Inflation: As with most industries, medical supplies and the costs associated with running healthcare facilities, including salaries of skilled professionals, contribute to rising prices.

● Chronic diseases are on the rise: India now sees 1 in 4 deaths from cardiovascular diseases, and cancer incidence is growing. These aren’t anomalies; they’re patterns, and treating them is becoming more expensive.

● Imported inputs = high bills: Implants, prosthetics, and even surgical tools are often imported, making them subject to currency fluctuations, duties, and international pricing.

However, focus on product features beyond the sum insured:

Check if the policy covers modern treatments (like robotic surgeries, immunotherapy).

Confirm restoration benefits and no-claim bonuses that enhance coverage.

Look for lifelong renewability and absence of disease-specific sub-limits.

Ensure it offers wide cashless hospital networks, especially in cities where you may seek treatment.

"A ₹1 crore cover is advisable for individuals over 30, families with children, or those with a family history of critical illnesses. For others, a layered approach — an ₹10–25 lakh base plan with a top-up — can also efficiently achieve the same goal," said Nerurkar.

Also, with advanced surgeries now costing upwards of ₹30–50 lakh, even a ₹25 lakh or ₹50 lakh cover might fall short, especially when dealing with multiple procedures, long hospital stays, or complications.

“For two adults aged 35 in Delhi, a ₹1 crore comprehensive family floater plan (with OPD, pre/post hospitalisation, cashless treatment) can cost around ₹2,000–2,500/month when paid monthly. The annual premium would be around ₹24,000–30,000 approx. This is a small price to pay for peace of mind — especially when even a single critical surgery can wipe out a decade of savings,” stated the policybazaar report.

A ₹1 crore health insurance plan is no longer an extravagance — for many, it’s becoming a practical shield against unpredictable and rising medical expenses. The real benefit lies in choosing it thoughtfully based on your needs and maintaining access to quality treatment without financial compromise.

Rakesh Kaul, Chief Business Officer of SBI General Insurance, said that the breakdown of the joint family system , single-income households, modern instability of jobs, gig economy and the increasing hospitalisation costs mean that we are one medical emergency away from a financial crisis. "A ₹1 crore health cover isn’t a luxury anymore, it’s a practical need, especially since most policies are taken as a family cover. Look for Super Top-ups as a smart and affordable way to boost protection. It steps in when the base cover falls short, ensuring your family gets the care they need without worrying about bills. It ensures you get quality care without compromise and are protected against medical inflation,” added Kaul.