Maternity insurance adoption jumps as young families seek financial security

Maternity cover in health insurance sees higher adoption

Maternity insurance saw a 150–180 percent jump in 2025 from the previous year, data released by Policybazaar shows, as more families seek financial security against rising costs associated with pregnancy and childbirth.

While Tier 1 cities accounted for 39.5 percent of the demand, Tier 2 and 3 cities contributed roughly 60 percent, as more young families opt for maternity cover through health insurance plans.

Moreover, 96 percent of the maternity cover buyers were first-time health insurance customers, data revealed.

According to Policybazaar, 85 percent of the maternity coverage was bought as an add-on, as only 15 percent comes built-in with the plan.

As many as 76.9 percent of the maternity cover buyers were aged between 18 and 35, with 84.4 percent of them women. Men accounted for 14.6 percent of policies, buying them for their spouses.

“This is largely because pregnancy is often the catalyst that pushes young families to secure financial protection,” the company said.

Costs associated with normal delivery and C-sections are higher in Tier 1 cities as compared to Tier 2 and 3 cities. Outpatient antenatal scans, check-ups and supplements add steady costs throughout pregnancy.

Data revealed that the maternity cost in Tier 1, 2, and 3 cities is as follows:

Normal delivery: Rs 25,000 to 50,000 (Tier 1); Rs 15,000 to 30,0000 (Tier 2/3)

C-section: Rs 78,000-1 lakh (Tier 1); Rs 50,000-75,000 (Tier 2/3)

In terms of renewal, OPD and maternity-linked covers maintained 80 percent growth in the first year. Insurance companies provide OPD cover as an add-on.

The outpatient department (OPD), where patients visit for consultation or minor treatment without the need for hospitalisation, is being provided as an add-on, where the insured amount is Rs 35,000 on average. These comprised 10–15 percent of overall policies.

According to data, individuals aged 45 to 60 years comprise 31.6 percent of OPD health insurance buyers. They purchased the coverage to manage expenses related to chronic care, routine doctor visits and diagnostics.

The 18–35 age group, who are increasingly health-conscious and have young families with kids, accounted for 21.8 percent of the buyers.

In terms of OPD coverage utilization, 40 percent of those who purchased the add-on utilised the cover. According to data, 40 percent used it for consultation, 35 percent for pharmacy support, 28 percent for diagnostics, and 11 percent for dental.

“As we look ahead, it’s clear that India’s health insurance industry is entering a consumption-first era. OPD will increasingly become a non-negotiable part of every health plan, as consumers seek value they can use throughout the year. Maternity covers will continue to bring in a large share of new buyers,” said Siddharth Singhal, Head of Health Insurance at Policybazaar.