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The appropriate amount of sum assured mostly relies on your location and likelihood of hospitalisation.

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The "luxury hospitals" in major cities are the most expensive, and prices rise as you travel to smaller communities. 

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Depending on the type of room used, the cost of an operation may vary by 30 to 40% even within the same hospital.

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As a general guideline, one should purchase coverage with a minimum sum assured of Rs. 10 lakh, or coverage that is at least equivalent to their yearly salary. 

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Should the person have a poor family medical history, this should be updated even higher.

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Do not forget that the sum assured ought to be sufficient to account for medical inflation over time.

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However, since you are an adult and your parents and you are likely at least 20 years apart in age, 

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you should get a separate insurance for yourself and think about insuring your parents under a family floater.

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you should get a separate insurance for yourself and think about insuring your parents under a family floater.

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