Indian Health Insurers Introduce Maternity Benefit Policy with Three-Month Waiting Period

India's Maternity Insurance Market Sees Shift Towards Younger Women

India's insurance industry is undergoing a significant transformation as young women, particularly first-time mothers, play a more prominent role in shaping demand for health coverage. The rising costs of medical care, increased awareness around maternal care, and changing family planning trends are compelling more women to view health insurance as an essential financial tool during pregnancy and childbirth.

According to data from the Ministry of Health and Family Welfare, India's maternity healthcare system has undergone a significant shift over the past decade. More than 97 percent of births in 2023–24 took place in hospitals or institutional settings, indicating a strong move towards formal medical care during childbirth. Government data released in 2025 further revealed that C-section deliveries accounted for over 27 percent of all births in 2024–25, underscoring the growing reliance on medically supervised and often expensive maternity procedures.

Against this backdrop, Care Health Insurance has observed a sharp rise in women's health-related claims. The company reported that claims filed by women increased by 37 percent between FY25 and FY26, with women in the 20–40 age bracket continuing to account for the largest share of claims. This age group alone recorded a 25 percent rise during the same period, highlighting the growing demand for maternity and reproductive healthcare coverage among younger policyholders.

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The trend is no longer limited to metropolitan areas. Tier 2 and Tier 3 cities are emerging as key growth centres for maternity insurance claims, accounting for nearly 60 percent of all maternity-related claims reported to Care Health Insurance. Insurers attribute this shift to rising healthcare awareness, improving hospital infrastructure, and increasing disposable incomes in smaller cities.

At the same time, insurers are witnessing a gradual increase in pregnancies among women aged above 35 years. Care Health Insurance data showed that women in this age group accounted for 12 percent of total maternity claims in FY26, higher than previous years. However, these claims made up 18 percent of the total claim amount, indicating that pregnancies at a later age are leading to higher medical expenses and more intensive healthcare needs.

Maternity claim payouts have increased by 25 percent over the past two years, despite fluctuating claim volumes. Insurers attribute this rise to the increasing average cost per case, driven by higher hospitalisation expenses, specialised care, and delivery-related procedures.

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The changing demand pattern is driving innovation in maternity health insurance products. Insurers are now offering fixed maternity benefits of up to Rs 50,000 even during pregnancy, with waiting periods reduced to as little as three months. Some plans provide maternity coverage of up to Rs 2 lakh, while pre and post-natal care has increasingly become a standard feature across leading policies.

One of the biggest changes in the segment is the inclusion of newborn cover from day one, including treatment for congenital defects. According to Policybazaar data, nearly 60 percent of couples buying health insurance now opt for maternity coverage, with the average maternity claim size standing at around Rs 50,000. The platform also noted that adoption of maternity-focused health plans is growing at more than 100 percent year-on-year, prompting insurers to widen the definition of newborn coverage and expand benefits for young families.

As maternal healthcare continues to formalise and utilisation rises, ensuring adequate and timely health insurance coverage remains critical to managing financial exposure and ensuring continuity of care.