SOURCE : NEW18 NEWS
Last Updated:May 25, 2025, 14:55 IST
Monthly payment options are becoming increasingly popular. Health insurance saw a 307% jump in monthly payments, indicating a preference for affordability and flexibility.
Monthly payment options are becoming increasingly popular. Health insurance saw a 307% jump in monthly payments, indicating a preference for affordability and flexibility.
Unified Payments Interface (UPI) is now responsible for one in three insurance premium payments. Specifically, investment products witnessed over 45% growth in FY25, indicating a rising comfort level with UPI for high-value transactions, according to Policybazaar’s detailed analysis of India’s payment habits across various categories.
UPI Leads The Charge In Digital Payments
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Health insurance also saw UPI payments increase by over 34%, now making up a quarter of all premium payments in this category. Term insurance, though less penetrated, recorded a 25% growth, with 36% of all premiums paid via UPI. Motor insurance showed a 15% growth in UPI payments, maintaining its lead with nearly 50% of premiums paid this way.
Credit Cards Make A Strong Comeback
Credit cards have shown a significant resurgence, especially in term and life insurance segments. Term insurance saw a 127% increase in credit card payments, while investment-cum-insurance products experienced nearly 300% growth. This trend suggests that consumers are opting for credit cards to benefit from rewards and financial flexibility. However, credit card use in general insurance remains lower, with a 47% growth in health insurance payments and a modest 7.2% increase in motor insurance.
Net Banking Remains Relevant
Despite the dominance of UPI and cards, net banking remains a preferred method for many. Term insurance payments via net banking grew by 290%, investment plans saw a 306% increase, and overall usage nearly doubled.
Tax Season Spurs Digital Payments
From January to March, digital premium payments jumped by 15%, driven by term and investment plans. This trend underscores the role of digital platforms in tax planning.
NRIs predominantly use credit cards for health insurance, though overall credit card usage dipped slightly from 61.25% to 57.53%. Conversely, NRI debit card usage rose from 38.75% to 42.47%, possibly due to easier onboarding and regulatory relaxations.
Debit Card Usage Declines
Debit card use decreased by 17% overall, with significant drops in motor insurance (61.6%), term insurance (37.1%), and health insurance (38.8%). Investment-linked plans were an exception, seeing a 41% rise in debit card payments.
Monthly Payment Mode Gains Popularity
Monthly payment options are becoming increasingly popular. Health insurance saw a 307% jump in monthly payments, indicating a preference for affordability and flexibility. Investment-cum-insurance products and term insurance also experienced significant increases, at 99% and 72% respectively, highlighting a shift towards disciplined financial planning.
- First Published:
May 25, 2025, 14:55 IST
