By Ettech Last Updated

Copyright indiatimes

Indians remain heavily dependent on employer-sponsored health insurance, often postponing the purchase of personal policies, according to a new report by insurtech platform Plum.The study, based on over 10,000 consultations and a survey of 350 respondents, found that 59% of employees do not have a personal health policy and rely on their employer’s group insurance during medical emergencies. While group health insurance penetration is growing about 20% annually, the growth in retail policies has stagnated.Plum, which provides employee wellness and business insurance solutions to corporate clients, said that 40% of its personal policy sales in the past six months came after a claim through an employer plan.However, delayed purchases are proving costly. In the last six months, 54% of Plum’s personal insurance consultations led to either rejections or higher premiums. Of these, 20% of policies were rejected because applicants were deemed high risk, while 34% had premiums that were 10% to 50% higher due to pre-existing conditions such as diabetes or hypertension, the report said.ETtech
This comes at a time when 71% of India’s workforce is at risk of chronic disease, it added.Maternity cover also remains under-penetrated, as more than 90% of users who request such add-ons eventually drop out due to long waiting periods.Founded in 2019, Plum offers a technology-driven platform that enables employers to provide comprehensive group health insurance to their employees, along with integrated wellness programmes. The company works with over 6,000 firms and is backed by investors including Tiger Global and Peak XV Partners. Earlier this year, Plum committed Rs 200 crore to expand its healthcare vertical, signalling a push into preventive and digital healthcare services.For the fiscal year ended March 2024, the company reported operating revenues of Rs 45.3 crore, according to Tracxn. Its net loss narrowed to Rs 25.5 crore from Rs 55.2 crore in FY23.