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According to a new report, cancer treatment is placing a huge financial burden on Indian families, as insurance companies cover only 70.8% of the expenses on an average. The result is that patients have to pay the remaining expenses from their own pockets and sometimes this amount wipes out their years of savings.
New Delhi. As difficult as the fight with cancer may seem, the cost of its treatment is more painful than it is. This is the reason why lakhs of people go broke due to bills rather than treatment. A new study has revealed the truth which can give sleepless nights to even good families. Be it a policy of Rs 10 lakh or a cover of Rs 5 lakh, insurance companies on an average pay only 71% of the bill. The remaining huge amount of money goes from the patient’s pocket and sometimes this amount is so much that years of savings get wiped out within minutes.
According to a report by insure-tech company Plum, health insurance companies in India are now paying only 70.8% of cancer treatment bills on an average, meaning patients have to pay the remaining expense, often Rs 4–5 lakh or more, from their own pocket, even if they have a coverage of Rs 5–10 lakh. The report includes data of 8,102 real claims for the last three years.
The report found-
- Claim deductions have increased by 58% in three years.
- The insurance company paid Rs 78 crore, but the patients had to pay Rs 23.2 crore from their own pocket.
- 1 out of every 4.7 patients exhausts their entire coverage of Rs 5 lakh.
- The bills of 21.4% patients reach more than Rs 5 lakh.
- The median cost of high-intensity treatment is Rs 7.6 lakh, which wipes out a family’s savings of 7–20 years.
Why is insurance falling short?
The report states that many hidden policy conditions cause huge harm to patients.
- Off-label drugs out of coverage New cancer drugs approved by the FDA in the US are not given coverage in India because they are considered off-label or experimental.
- 50% sub-limit on expensive treatment- Only half payment is made on oral chemo and modern treatment, the rest is paid by the patient.
- Room rent cap, co-pay, waiting period- These small rules greatly reduce the actual payout.
- Most expensive cancers, lowest coverage- Cases of blood, brain, liver and pancreatic cancer often reach bills of more than Rs 10 lakh.
Most Common and Costly Cancers in India (2025)
- Breast cancer – highest number of cases
- Blood Cancer – Cases with highest expenditure of Rs 10 lakh+
- Brain Cancer – 4-5 lakhs out of pocket even if there is a policy of 10 lakhs
- Colorectal, stomach, pancreatic – heaviest economically
- Testicular cancer – big impact on young patients
- Prostate – common in ages 50+
Expert advice
Even though early detection has improved by 72%, financial protection has become weaker. In today’s time, health coverage of Rs 5-10 lakh for cancer is not considered enough. Experts recommend plans with coverage up to Rs 25–50 lakh, critical illness riders and no sub-limits.
