India Accident Insurance Market Size (Gross Written Premium, New Business Premium), Share, And Trend Analysis Report By Insurance Type (Public, Private), By Policy Type, And Segment Forecasts, 2025 - 2030

India Accident Insurance Market Trends

The India accident insurance market size in terms of Gross Written Premium (GWP) was valued at USD 985.84 million in 2024 and is expected to expand at a CAGR of 8.86% from 2025 to 2030. The India accident insurance market size in terms of New Business Premium (NBP) was valued at USD 680.01 million in 2024 and is expected to expand at a CAGR of 9.21% from 2025 to 2030. A rising awareness of the importance of financial protection against unexpected casualties drives the industry's growth. Public insurance, typically offered through social security systems, ensures that individuals receive compensation for work-related injuries or disabilities. Government initiatives for accident insurance coverage and occupational safety standards further support this. For instance, in May 2025, the government of India launched the Cashless Treatment Scheme for Road Casualty Victims. This nationwide program provides up to USD 17,555.5 in cashless medical treatment for victims of road accidents, regardless of their insurance status. It reflects the government’s broader commitment to public health and worker protection.

This initiative complements existing policies under the Employees' State Insurance Corporation (ESIC) and the Workers' Compensation Act, which offer accident and disability insurance for formal sector workers. The scheme also aligns with India's growing emphasis on occupational safety, with the Ministry of Labour revising standards and compliance frameworks under the Occupational Safety, Health and Working Conditions Code, 2020.

Increasing Disposable Income

Private insurance is gaining popularity as more people look for coverage that goes beyond what public systems offer. This shift is largely fueled by increasing disposable incomes, enabling consumers to opt for more extensive insurance options. In addition, the rise in safety concerns has prompted employers to enhance their employee benefits packages. The incorporation of technology in claims processing and customer service has further improved accessibility and efficiency, simplifying the process for consumers to acquire and manage their policies. These factors contribute to a strong growth trajectory for both public and private accident insurance in India.

In India, insurance coverage for employees is primarily managed through the Employees’ State Insurance (ESI) Scheme, overseen by the Employees’ State Insurance Corporation (ESIC). Below is the breakdown of employee contribution rates related to accident and health coverage:

Source: ClearTax, Grand View Research

Furthermore, as per the Grand View Research analysis and estimates, there is a steady growth in the profitability of the market, indicating further expansion.

Private Accident Insurance Profitability Estimates

Source: Grand View Research Estimates

Technological Advancements and Digitalization

Innovations such as telematics and digital platforms have transformed how accident insurance is marketed and managed. Insurers are now able to offer personalized policies based on individual behavior and risk profiles, which enhances customer engagement and satisfaction. Furthermore, technology facilitates quicker claims processing and better fraud detection mechanisms. For instance, in July 2024 , Bajaj Allianz General Insurance successfully processed its first claim through the National Health Claim Exchange (NHCX) platform. This achievement marks a crucial step for the company and the broader Indian insurance sector, signaling a move towards accelerated claims settlement, enhanced transparency, and greater convenience for policyholders. The Insurance Regulatory and Development Authority of India (IRDAI) has actively advised all insurers and service providers to onboard the NHCX, underscoring its importance for the industry.

Growing Economic Stability in the Country

Economic stability plays a crucial role in the growth of the industry. As disposable incomes rise, individuals are more likely to invest in additional private insurance policies that complement their basic public coverage. For instance, as per updates published in December 2024, 48 crore Indians have enrolled in the USD 2,340.74 accident insurance under the Pradhan Mantri Suraksha Bima Yojana (PMSBY). The scheme is available to individuals between the ages of 18 and 70 who have a bank or post office savings account with auto-debit enabled. The annual premium for the insurance cover is USD 0.23 per person, providing an accidental death cum disability cover of USD 2,340.74 (USD 1,170.37 lakh in case of partial disability).

Government Funding for Accident Victims in India

Source: Grand View Research Analysis

Rising Number of Lifestyle-Related Injuries and Casualties

Moreover, the rising incidence of lifestyle-related injuries has prompted an increase in demand for accident insurance products that cover a broader range of activities beyond traditional workplace incidents. This trend reflects changing societal norms where physical activity is encouraged but also carries inherent risks. Furthermore, there has been a growing recognition among individuals and businesses regarding the importance of risk management strategies. As people become more aware of potential risks associated with daily activities such as commuting or engaging in sports, there is an increased demand for both public and private accident insurance products.

Market Concentration & Characteristics

The chart below illustrates the relationship between industry concentration, industry characteristics, and industry participants. The x-axis represents the level of industry concentration, ranging from low to high. The y-axis represents various industry characteristics, including industry competition, degree of innovation, impact of regulations, level of partnership & collaboration activities, and geographic expansion. The India accident insurance industry operates under a highly competitive and fragmented structure. The degree of innovation is moderate, and the impact of regulations on industry is high. The level of partnership & acquisition activities is moderate, and the geographic expansion of the industry is high.

The degree of innovation in the industry is significantly moderate, driven by digitalization, regulatory reforms, and personalized healthcare solutions. For instance, in January 2025, AXA introduced AXA Digital Commercial Platform (DCP). This platform serves as a comprehensive tool designed to assist clients in managing their insurance needs more effectively. DCP offers various functionalities that are crucial for modern businesses facing complex risks.

Several key market players are devising business growth strategies in the form of mergers and acquisitions. Through M&A activity, these companies can expand their business geographies. In January 2025, PhonePe and ICICI Lombard General Insurance partnered to offer a first-of-its-kind insurance coverage for devotees attending the Maha Kumbh Mela in Prayagraj, Uttar Pradesh. This comprehensive insurance plan provided extensive coverage for various risks, including hospitalization, doctor consultation, outpatient treatment, personal accident cover, loss of checked-in baggage, trip cancellation cover, missed connecting flight cover, and repatriation of remains.

The industry in India operates under a robust regulatory framework established by the Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI, constituted under the Insurance Regulatory and Development Authority Act, 1999, plays a pivotal role in ensuring the orderly growth of the insurance industry, protecting policyholder interests, and fostering financial stability. These regulations mandate licensing requirements, define solvency norms, stipulate capital adequacy ratios, and ensure transparency in pricing and policy disclosures. IRDAI actively monitors the conduct of insurers and intermediaries, enforces consumer protection guidelines, and promotes innovation through sandbox regulations.

Insurance providers are increasingly diversifying their offerings to cater to different customer segments, including expatriates, freelancers, self-employed individuals, and corporate employees. Furthermore, enhancements in coverage options address specific risks associated with daily activities, such as sports injuries and travel-related accidents. Moreover, insurers are also leveraging data analytics and artificial intelligence to refine their offerings, allowing for more personalized insurance solutions that cater to the unique circumstances of policyholders.

Several market players are expanding their business by entering new geographical regions to strengthen their market position and expand their product portfolio. In November 2024, Shriram General Insurance Company (SGIC) entered into a strategic partnership with The Muthoot Group to offer general insurance products to Muthoot Securities Ltd's customers through an online platform. This collaboration aims to provide a seamless and convenient insurance-buying experience, allowing users to access a wide range of general insurance products, including motor, fire, engineering, health, and other insurance solutions.

Insurance Type Insights

The insurance type segment comprises of public and private. Public insurance is further cross segmented into corporate policy and retail policy. The private segment dominated the market in 2024 and accounted for the largest revenue share of 66.33% in 2024.

This growth is driven by a combination of rising awareness, increasing urbanization, and a growing middle class with higher disposable incomes. As India experiences rapid economic development, more individuals are becoming conscious of financial protection against unforeseen events such as accidents, especially in urban areas where road traffic injuries are more common. In addition, the rise of digital platforms has made it easier for insurers to reach a wider audience and offer customized, affordable plans, particularly targeting gig economy workers and informal sector employees who lack traditional employer coverage. Moreover, private insurers are actively offering affordable, customizable policies, leveraging digital platforms for easy access and claim processes. This customer-centric approach, combined with aggressive marketing and a young, increasingly insured population, continues to fuel the sector’s growth.

The public segment is anticipated to register the fastest growth over the forecast period. This growth is attributed to the combination of socioeconomic and policy-level factors. Increasing awareness of financial protection among citizens, especially in lower-income and rural populations, has played a key role. Government initiatives like the Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in 2015, have significantly boosted enrollment by offering low-cost accident coverage to a wide section of the population. The rapid expansion of digital infrastructure and mobile banking has also facilitated easier access and enrollment in such schemes, even in remote areas. Moreover, the rise in road accidents and occupational hazards in informal sectors has heightened the perceived need for personal accident coverage. Support from public sector insurance companies and regulatory encouragement from the Insurance Regulatory and Development Authority of India (IRDAI) have further promoted the expansion and standardization of accident insurance products, making them more affordable and accessible across the country.

For instance, below is the product offered by Star Health & Allied Insurance Co. Ltd., a private insurer

Moreover, government initiatives promoting personal wellness contribute to an environment where private insurance becomes increasingly relevant. This combination of factors is expected to sustain robust growth in the private accident insurance sector.

Policy Type Insights

The retail policy segment dominated the market in 2024 and accounted for the largest revenue share of 57.68%. The increasing penetration of digital technologies drives this growth. Insurers are leveraging digital platforms to offer customers customized and affordable accident insurance products. Furthermore, the government's initiatives to promote financial inclusion and social welfare have also contributed to the growth of the accident insurance market. For instance, the government's announcement to increase the insurance coverage under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) has provided higher financial protection to economically weaker sections.

The corporate policy segment is anticipated to grow significantly over the forecast period, driven by the increasing middle-class population, rising disposable income, and expanding insurance penetration. The market is also driven by the growing demand for health and life insurance products and the emergence of InsurTech companies that are revolutionizing the way insurance is bought and sold in the country. Increasing popularity of health and life insurance products, growing demand for customizable insurance plans, and rising awareness of financial protection are propelling segment demand. Moreover, the market is influenced by government initiatives aimed at expanding insurance penetration among underserved segments and regulatory changes shaping the market dynamics. 

Key India Accident Insurance Company Insights

The private accident insurance sector is considerably fragmented. Notable insurers in this segment include Star Health & Allied Insurance Co. Ltd., one of the world's largest insurance groups, offering diverse and comprehensive accident insurance products tailored to various customer segments. ICICI Lombard General Insurance Co. Ltd., the leading player, holds a substantial market share primarily among civil servants and high-income individuals. Other prominent private insurers, including Bajaj Allianz General Insurance Co. Ltd. and Care Health Insurance Ltd., are all competing by offering flexible, personalized coverage and enhanced customer experience

Recent Developments

• In July 2024, India Post Payments Bank (IPPB) introduced a new accidental insurance policy to provide accessible coverage for individuals with lower financial means. The policy covers accidental death, permanent or partial disability, limb damage, paralysis, hospital expenses, OPD costs, and related treatments. Moreover, this insurance scheme has different variants, including Health Plus and Xpress Health Plus.

• In June 2024, India Post Payments Bank (IPPB) launched an accidental insurance plan aimed at providing affordable coverage to individuals who are unable to pay higher premiums. This plan is designed to be wallet-friendly, making it accessible to a wider audience. The plan also includes benefits such as annual health check-ups, unlimited medical counselling over the phone, and medical expenses due to accidents.

India Accident Insurance in Terms of GWP Market Report Scope

India Accident Insurance Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of industry trends in each of the sub segments from 2018 to 2030. For the purpose of this study, Grand View Research, Inc. has segmented the India accident insurance market report on the basis of insurance type and policy type:

• Insurance Type Outlook (Revenue USD Million, 2018 - 2030)

  • India Accident Insurance Market {Gross Written Premiums (GWP)}

    • Public

      • By Policy Type

        • Corporate Policy

        • Retail Policy

      • Private

        • By Policy Type

          • Corporate Policy

          • Retail Policy

  • India Accident Insurance Market {New Business Premiums (NBP)}

    • Public

    • Private

• India Accident Insurance Market (GWP), Policy Type Outlook (Revenue USD Million, 2018 - 2030)

  • Corporate Policy

  • Retail Policy