Industry data indicates that claims related to liver ailments have doubled over the past three years, while treatment costs have increased by nearly 100% during the same period.
The rise reflects a combination of higher incidence, delayed diagnosis and more complex treatment requirements.
An analysis by Care Health Insurance shows that the disease profile is shifting beyond traditional segments. Cases among younger policyholders are increasing at 5–10% annually, while claims from Tier 2 and Tier 3 cities are rising at 10–15% each year. Claims among women are also growing at nearly 10% annually, indicating a gradual broadening of the risk base.
At a population level, the Ministry of Health and Family Welfare estimates that non-alcoholic fatty liver disease (NAFLD) affects between 9% and 32% of Indians, driven largely by metabolic and lifestyle factors such as obesity and sedentary habits. The condition often progresses without early symptoms, leading to higher costs at the point of treatment.
“Liver diseases are no longer confined to a narrow risk pool but are expanding in ways that are increasingly concerning,” said Manish Dodeja, Chief Operating Officer, Care Health Insurance, noting a shift in both the demographic profile and severity of cases.
The trend is also influencing how insurers and policyholders approach coverage. G Srinivasan, MD & CEO, Galaxy Health Insurance, said conventional policy sizes are misaligned with current treatment costs.
“A ₹5 lakh sum insured, once standard, is now often inadequate, especially when major treatments can exceed ₹10 lakh,” Srinivasan said.
He added that a base cover of around ₹15 lakh, supplemented with top-up plans, is becoming more consistent with prevailing medical expenses.
He also pointed to underwriting challenges linked to lifestyle-driven conditions such as metabolic dysfunction-associated steatotic liver disease (MASLD), which are typically treated as pre-existing if identified before policy purchase, resulting in waiting periods of two to three years before claims are admissible.
Srinivasan said preventive care is gaining prominence within insurance offerings as the disease burden evolves.
Regular health check-ups and early diagnostics for conditions such as diabetes, hypertension, high cholesterol and fatty liver can help reduce long-term costs by enabling earlier intervention, he said. Insurers are increasingly incorporating wellness benefits and condition management programmes into standard plans.
Long-term projections suggest the burden could widen further.
Estimates by the World Obesity Federation indicate that around 1.19 crore Indian children could be living with liver disease by 2040 if current trends persist.
The convergence of rising incidence, expanding demographics and higher treatment costs is gradually reshaping health insurance—from a focus on hospitalisation cover to a broader approach that includes prevention, early detection and adequate financial protection.
