New Delhi, Nov. 24 -- India's health insurance sector is witnessing a sharp rise in claims even as the gap between claims filed and amounts settled continues to widen, according to the latest data from the Insurance Regulatory and Development Authority of India (IRDAI).

Health insurance claims surged 21.18 percent in FY25, with insurers settling 3.26 crore claims and paying out Rs 94,247 crore, IRDAI data shows.

In comparison, FY24 saw 2.69 crore claims settled with payouts worth Rs 83,493 crore, reported IE.

However, the amount settled grew only 12.88 percent, highlighting rising healthcare costs, higher utilisation, and potential inefficiencies in claim settlement.

Premium collections also rose, with insurers mobilising Rs 1.18 lakh...