Insurance claims reveal sharp rise in early cancer detection even as treatment costs soar, study finds

India is catching more cancers early — but at a staggering financial cost. New data from Plum’s Data Labs, which analysed over 100,000 insurance claims between 2023 and 2025, shows a sharp 61% rise in early-stage cancer detections, pointing to better screening and awareness. Yet, the same data reveals that treatment costs are soaring, with many families paying out of pocket despite insurance, and average payouts from insurers steadily shrinking.

Early detection

Data from Plum’s Data Labs – analyzing 100,000 Indian insurance claims from 2023–2025 – shows a sharp rise in early-stage cancer diagnoses. The share of in-situ (stage 0) carcinomas jumped from 29% of claims in early 2023 to about 50% by late 2024. This 61% increase in early detection suggests screening and awareness are improving. Breast cancer remains the largest single category (11.6% of malignant claims), followed by blood/lymph cancers (9.6%) and colorectal (5.7%).

Rising cost of treatment

The report highlights eye-popping treatment costs. The most expensive cancers on average are colorectal (Rs 507,672), brain (Rs 490,063) and stomach (Rs 453,175). On average, cancer patients file four claims a year, and even “standard” treatment runs into lakhs of rupees. Costs correlate with case complexity: a low-complexity case (1–2 claims) averages Rs 1.63L (~1.5 years of a typical saver’s income), while a very-high complexity case (20+ claims) averages Rs 15.43L (~15 years of savings).

Gender and age patterns

The data reveal stark gender patterns. Apart from sex-specific tumors, men dominate blood/lymph cancers (71.5% male cases) and head/neck (77.9%), while women account for essentially all ovarian (100%) and uterine (99.1%) cancers. Some cancers also show age shifts: for example, women with liver cancer had median age 29 vs. 59 for men.

Patient journeys underline the burden

Individual claims data underline the human impact. A 40-year-old man with oral/throat cancer underwent 2 hospitalisations and 5 chemotherapy cycles in 2.2 months, costing Rs 42.44L – about 42 years of average savings. A 49-year-old woman with leukemia (blood cancer) had 4 hospitalizations and 1 chemotherapy cycle over 3.5 months, totaling Rs 40.56L. Another patient – a 66-year-old woman with colorectal cancer – endured 16 hospital stays and one chemo over 7.8 months, costing Rs 33.25L.

Gaps in insurance coverage

Yet even severe cases often go underinsured. Over 2023–25 the average insurer payout ratio on cancer claims fell from ~76% (H1 2023) to 63% (H1 2025), meaning insurers are increasingly deducting 32–38% of the bill. High-cost cancers see particularly low coverage – for example, brain cancer averaged just 46.5% paid by insurers (≈₹2.62L out-of-pocket). The report cites policy gaps: many new cancer drugs may be considered “off-label” in India and get rejected, and modern treatments (like oral chemotherapy) often face strict 50% coverage sub-limits.

Is Rs 5 lakh insurance enough?

Data on claim amounts suggest a Rs 5 lakh sum insured is often inadequate. Nearly 14% of cancer patients in the Plum survey spent over Rs 5 lakh, exhausting a Rs 5 lakh cover. By contrast, 65% of patients incurred less than Rs 2.5 lakh (45% under Rs 1.25 lakh and 20% between Rs 1.25 lakh and Rs 2.5 lakh). In other words, while many treatments stay below a few lakhs, a significant minority surge into multiple lakhs.

Plum’s claims analysis paints a stark picture: cancer is increasingly detected early, but treatment costs can obliterate decades of savings. Multi-year treatment across surgery, chemo and tests can wipe out family savings, and insurance often covers only a fraction of the bills. Experts say these findings underscore the need for stronger health coverage and policy reforms to protect families from these life-altering expenses.