new delhi clocking a compounded annual growth rate cagr of 20 per cent indias health insurance premium is likely to cross rs 32038 crore by 201617 from rs 13092 crore recorded in 201112 on th back of rising income levels and health insurance premium says an assocham study increase in healthcare costs rising percapita incomes burden of new diseases healthrelated risks and high financial burden on the poor are key factors that have contributed towards growth of health insurance market in india assocham secretary general d s rawat said over 65 per cent of people covered by health insurance sector in india come under the ambit of private companies whereas public insurance companies account for coverage of only 35 per cent people according to the study while the public sector insurance companies garner maximum share of health insurance premium to the tune of 615 per cent in india private health insurers account for just 385 per cent it said moreover the study also found that referrals constitute a meagre 01 per cent in terms of both the number of policies sold as well as medical insurance premium collected the study further suggested to the insurance regulatory development authority irda to evolve a mechanism to ensure that private insurance companies do not skim the market by focusing on rich and upper class clients thereby neglecting the masses the success and sustainability of health insurance sector in india will depend upon the development of a strong governance framework efficient management and monitoring systems alongwith introduction of cost containing and product improvement mechanisms the study added