GIC agrees to form a working group to advance insurance coverage for long-term senior healthcare
India’s ageing population is driving growing demand for prolonged rehabilitation, nursing, palliative care, dementia supervision, assisted living and residential care, creating sustained financial requirements for families.
The need for a structured financing framework for such care was discussed at the General Insurance Council (GIC) Council Meeting in Mumbai on September 4, 2026. Senior care and insurance experts have called for Long-Term Care (LTC) to be recognised as a distinct, insurable risk, separate from acute hospitalisation.
GIC has agreed to form a working group to advance insurance coverage for long-term senior healthcare. The proposed phased approach includes introducing LTC and cognitive-impairment riders on existing retail and group health policies, followed by standalone LTC and assisted-living products over a 2–3-year period.
The framework also proposes linking coverage to licensed and accredited care facilities, simplifying cognitive-impairment assessments and claims, exploring premium incentives and tax-linked support, and piloting products to generate Indian data on care dependency, rehabilitation, caregiving and costs.
Dr. Karthik Narayan R, Founder & MD, Athulya Senior Care, and Chairperson CII Committee on Senior Care, said, “India’s ageing journey is changing the nature of healthcare demand. As people live longer, a larger proportion will require support with daily activities, rehabilitation, assisted living or cognitive care for extended periods. These needs can place a considerable financial burden on families because traditional health insurance is largely designed around medical treatment and hospitalisation. Recognising long-term care as a distinct insurable risk can help bridge this gap and give families greater financial predictability. A phased approach, beginning with riders and group pilots and gradually evolving towards comprehensive LTC products, can help build a sustainable model for India.”
Dr S Prakash, CEO of GIC Health, said, “Insurance companies want to have an Inclusive approach to help penetrate health insurance in India. To do this effectively for elderly citizens, we need clear guidelines on who qualifies for coverage, how care needs are assessed, quality standards for care providers, and fair pricing. This can be done via a phased approach, starting with pilot programmes and employer-linked insurance plans to cover elderly can help insurers gain experience and collect data. This foundation should enable insurers to design better, more sustainable long-term care products over time.”
Mr. Shyam Viswanathan, Co-Founder of Dementia India Alliance (DIA) and Association for Healthy Ageing (AHA), said: “Dementia is a particularly important consideration in long-term care, since the need for support may prolong over several years – and well beyond the treatment of the underlying medical condition. Families often have to manage the costs of supervision, daily assistance and supportive or residential care. Insurance products that recognise long-term care and dependency as distinct financial risks will provide families with greater choice and security. It is equally important to have caregiver-friendly claims processes and access to a variety of care settings, apart from hospitals.’’
