TATA AIG General Insurance has unveiled a new health insurance product, MediCare Select, as part of its ongoing expansion strategy in India’s retail health segment.
The launch comes alongside broader efforts by the insurer to strengthen its presence in non-metropolitan regions and diversify its health portfolio.
The company aims to increase its hospital network from the current 11,500 to over 14,000 by the end of fiscal year 2027. During the same period, TATA AIG expects Tier 2 and Tier 3 cities to account for 35% of its health business, up from 26% today.
The initiative reflects a shift in focus toward untapped markets and population segments with lower insurance penetration.
Neel Chheda, chief underwriting and data science officer at TATA AIG, noted the product was designed to respond to evolving consumer demands.
“MediCare Select brings together value, versatility, and access – offering meaningful protection that aligns with the changing healthcare needs of today’s consumers. As medical costs rise and health conditions evolve, this product enables individuals and families to stay covered without compromise,” he said.
A 2024 health trends report by ACKO, based on analysis of approximately 60,000 insurance claims, underscored the financial pressure faced by households amid escalating medical expenses.
The report recorded an average 11.35% increase in claim amounts, reflecting medical inflation levels that reached 14% in 2023.
According to ACKO’s findings, a majority of Indian healthcare spending continues to be paid directly by individuals, with 62% of expenses not covered by insurance. Despite urbanisation and growing health concerns, only 23% of urban households reportedly hold health policies.
Regional disparities were also highlighted. Delhi NCR reported the highest number of kidney-related cases, while cities like Mumbai and Kolkata recorded elevated instances of heart disease. Younger age groups saw more respiratory-related claims, while tumour-related and cardiac hospitalisations became more frequent among individuals over 40.
Corporate health insurance, often provided by employers, was found to have coverage gaps due to policy limits.
MediCare Select offers several optional features, including:
Additional options include maternity-related benefits, daily hospital cash support, and premium discounts for salaried individuals and families with younger members.
“Over the past three years, we’ve seen growing adoption of our retail health offerings, and this launch will help us extend that reach to more geographies and segments, ensuring broader access to quality healthcare,” Chheda said.
