New Delhi, India – March 17, 2026
The Indian government has set an ambitious goal to provide health insurance coverage to every citizen by 2033, Finance Minister Nirmala Sitharaman announced in the Rajya Sabha on Tuesday.
Responding to a supplementary question during Question Hour, the minister highlighted that expanding insurance coverage remains a key policy priority for the central government.
Rapid Growth in Insurance Sector
Sitharaman noted that India’s insurance sector is witnessing rapid expansion, evolving into a more inclusive ecosystem that extends financial protection to even the most vulnerable sections of society.
According to official data:
The health insurance market size reached ₹1,17,505 crore in FY 2024–25
Around 58 crore people are currently covered under health insurance
Balanced Participation Across Sectors
The market reflects a balanced contribution from different segments:
Public sector insurers: ₹42,420 crore premium
Private insurers: ₹37,752 crore
Standalone health insurers: ₹37,331 crore
Policy Coverage Expands Significantly
Citing data from the insurance regulator, the minister shared:
2.51 crore individual policies issued in FY25, covering 6.01 crore people
13.05 lakh group policies, covering 27.51 crore members
Government Push to Increase Coverage
Acknowledging that insurance penetration in India remains lower than global standards, Sitharaman said:
Global average premium per capita: $943
India’s per capita premium: $97
To bridge this gap, the government is implementing targeted reforms, including:
GST relief on individual insurance premiums
Regulatory changes by IRDA (2024) to expand rural and social sector coverage
A proposed bill (December 2025) to increase FDI in the insurance sector
Key Welfare Schemes Driving Inclusion
The government emphasized that no citizen, especially the economically weaker sections, will be left behind.
Major Schemes:
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
₹2 lakh life cover at an annual premium of ₹436; 26.79 crore enrollmentsAyushman Bharat (AB-PMJAY):
Covers ₹5 lakh annual hospitalization for nearly 12 crore familiesSenior Citizen Expansion:
Extended in October 2024 to include 6 crore citizens aged 70+
As of February 28, 2026, 43.52 crore Ayushman cards have been issued
Strict Regulation and Penalties
The Finance Minister assured Parliament that insurance companies are being closely regulated, with strict action taken against unfair practices.
In recent years, penalties have been imposed on several firms for violations:
Reliance General Insurance
Bajaj Finance Limited
HDFC Life
SBI Life
Royal Sundaram General Insurance
Rural Expansion and Future Plans
To improve insurance access in rural India, the government is working to include 25,000 gram panchayats under insurance initiatives.
Additional Economic and Supply Updates
The Finance Minister also addressed other key issues:
LPG supply remains uninterrupted, with refineries increasing output by 25%
India has adequate fertilizer availability for current crop cycles
The economy continues to show resilience in the post-COVID era
