New Delhi, June 5 -- Mumbai-based Sarita Aggarwal, 62, has had an Rs.8 lakh health insurance policy from a national insurer for nearly two decades. But in recent years, the annual premium has shot up-from Rs.25,000 in 2022 to Rs.35,000 in 2023, and then Rs.52,500 in 2024. She's bracing for yet another hike in 2025.

She has been considering discontinuing the policy and building a medical emergency fund instead. "Even as I am paying such a huge premium, I had to sue my insurer thrice to get my claim settled. I won twice," she said. "Damned if you do and damned if you don't,"she says. Yet, she suspects she'll keep renewing it, simply because there seems to be no alternative.

Thane-based Sameer Deshpande, 58, took a different path. After ea...