Rising maternity treatment costs, growing institutional deliveries and an increase in pregnancies among women above 35 are pushing up women’s health insurance claims in India, according to new data released by Care Health Insurance.
The insurer said women’s health insurance claims rose 37 per cent between FY25 and FY26, with the 20–40 age group continuing to account for the largest share of claims.
At the same time, maternity-related hospitalisation is becoming significantly more expensive, particularly in Tier-II and III cities.
The findings point to a larger shift in India’s maternal healthcare landscape, where more women are opting for institutional and medically supervised care, but at a higher financial cost.
Institutional deliveries are now the norm
India has seen a sharp rise in hospital-based childbirth over the past decade. Data from the Ministry of Health and Family Welfare shows that institutional deliveries reached 97.3 per cent in 2023–24, reflecting a sustained move away from home births towards formal healthcare systems.
The trend has also coincided with an increase in medically intensive procedures. Government data presented in 2025 showed Caesarean-section deliveries accounted for more than 27 per cent of reported births during 2024–25.
For insurers, this shift is translating into higher claim payouts.
According to Care Health Insurance, overall maternity claim outgo has increased 25 per cent over the past two years, even though claim volumes have fluctuated. This indicates that the average cost per maternity case is rising steadily.
Tier-II and III cities drive claim volumes
One of the key trends highlighted in the report is the growing contribution of smaller cities to maternity claims.
Tier-II and III cities accounted for nearly 60 per cent of all maternity claims reported to the insurer. Industry observers say this reflects increasing healthcare access beyond metros, rising awareness around maternal care, and greater penetration of health insurance products in non-metro markets.
However, healthcare inflation is also spreading rapidly across these regions. Hospitalisation expenses related to childbirth, diagnostics, specialist consultations and newborn care have become considerably more expensive over the past few years.
For middle-income families, even planned maternity expenses can place pressure on savings if insurance coverage is inadequate or waiting periods are not factored in early.
Pregnancies above 35 adding to cost intensity
The report also points to changing maternal age patterns.
Women aged above 35 accounted for 12 per cent of total maternity claim volumes in FY26, higher than previous years. More importantly, this category contributed 18 per cent of the overall maternity claim amount, indicating that later-age pregnancies are associated with higher treatment costs.
Medical experts generally classify pregnancies after 35 as relatively higher-risk because they may require closer monitoring, additional tests or specialised interventions. This often increases hospital bills and insurance claims.
The rise in delayed parenthood is being driven by several factors, including career priorities, financial planning, urban lifestyles and late marriages.
For insurers, this means maternity products may increasingly need recalibration around risk pricing and coverage structures.
Shorter hospital stays, but bills still rising
Interestingly, the report noted that hospital discharge timelines are becoming shorter and more efficient.
The proportion of women discharged within five days of maternal care increased from 75 per cent in FY24 to 82 per cent in FY26. However, shorter hospital stays have not translated into lower costs.
Instead, insurers are witnessing higher cost intensity per treatment episode.
This suggests that advanced procedures, diagnostics, specialised care and rising hospital tariffs are offsetting gains from reduced hospital stay durations.
Why this matters for policyholders
The rise in maternity-related healthcare costs has direct implications for families buying health insurance.
Many standard health insurance policies either:
· Impose waiting periods for maternity cover,
· Cap maternity claim amounts, or
· Exclude newborn-related complications beyond a limited period.
As a result, policyholders often discover coverage gaps only when planning childbirth.
“Women’s health insurance claims are no longer following a linear growth pattern; they are expanding in both scale and intensity,” said Manish Dodeja, chief operating officer, Care Insurance.
He added that while care pathways are becoming more efficient, the financial exposure associated with maternal healthcare continues to rise, making it important for individuals to reassess their health insurance coverage periodically.
What families should evaluate before buying maternity cover
Financial planners say buyers should examine several aspects before relying on maternity insurance benefits:
· Waiting period for maternity benefits
· Sub-limits on delivery expenses
· Coverage for Caesarean procedures
· Newborn baby cover duration
· Pre- and post-natal expense coverage
· Network hospitals in their city
· Premium increases after claim usage
Since many maternity plans have waiting periods ranging from two to four years, early planning remains critical.
The report also underlines a broader healthcare challenge. While more women are accessing antenatal care services, nutritional vulnerabilities continue to persist. Public health data shows many women still have inadequate dietary iron intake, which can affect long-term maternal health outcomes.