Health insurance will be extended to the entire population by 2033, Finance Minister Nirmala Sitharaman told the Rajya Sabha, positioning universal health cover as a central priority of the government’s economic and social agenda. Responding to supplementary questions during Question Hour, she underlined that the sector is expanding rapidly, with health insurance covering 58 crore lives in 2024–25 and the market size reaching Rs 1,17,505 crore in the same period. The push is being framed as both a social protection measure and a lever to strengthen India’s health system by reducing out-of-pocket spending and deepening risk pooling across income groups.
“Health insurance is a priority for this government. In fact, we are hoping that by 2033 we will have insurance cover for all,” Sitharaman said, linking the goal to the broader development agenda of inclusive growth and enhanced financial security. She stressed that rising coverage numbers, a widening product range and stronger regulation indicate that India is “steadily building a more inclusive, accessible, and resilient health insurance ecosystem”. The commitment comes at a time when households continue to face significant financial stress from medical expenses, particularly in the absence of robust pre-paid health coverage.
The minister highlighted that the government has moved on multiple fronts to deepen insurance penetration, particularly in underserved regions and population segments. In 2024, the Insurance Regulatory and Development Authority of India (IRDAI) notified rules for the rural social sector and third-party obligations to drive coverage in rural and low-income areas where protection remains patchy and informal mechanisms dominate. Sitharaman also recalled that in December 2025, the government introduced a Bill to hike foreign direct investment limits in the insurance sector, a step expected to increase capital flows, expand product offerings, spur innovation and support wider distribution networks.
Yet, despite the expansion, she acknowledged that India continues to face a substantial protection gap. The country’s per capita insurance premium stands at 97 US dollars, compared with a global average of 943 US dollars, underscoring the distance to be covered in both penetration and depth of cover. “While penetration remains low, the government is actively bridging this gap through targeted reforms and affordability measures. Health insurance is now a clear priority with GST exemption on individual premiums, expansion of coverage and strong regulatory push driving the momentum,” she said.
Sitharaman detailed how public, private and standalone health insurers are all contributing to the sector’s growth, creating a relatively diversified market. Public sector insurers provide health cover worth Rs 42,420 crore in premiums, private sector insurers account for Rs 37,752 crore and standalone health insurance companies contribute Rs 37,331 crore, reflecting a balance that policymakers hope will sustain competition and support innovation. This mixed landscape is expected to be critical as India attempts to extend meaningful cover to hundreds of millions who remain uninsured or underinsured.
Flagship social protection schemes remain central to the government’s inclusion strategy, particularly for low-income households and informal workers. The finance minister said the Pradhan Mantri Jeevan Jyoti Bima Yojana offers life cover of Rs 2 lakh for an annual premium of Rs 436 and has recorded 26.79 crore enrolments, with strong performance during the COVID-19 period. She framed the scheme as a key instrument to ensure that “even the most vulnerable are not left behind” when confronted with health and mortality-related shocks.
On the health side, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) provides coverage of Rs 5 lakh per family per year for secondary and tertiary care hospitalisation to 12 crore families, representing the bottom 40 per cent of the population. Coverage under AB-PMJAY has been broadened further in a significant policy shift towards elderly protection. In October 2024, the scheme was expanded to include 6 crore senior citizens aged 70 years and above from 4.5 crore families, regardless of socio-economic status, signalling a move beyond the original poverty-linked eligibility criteria. As of 28 February 2026, 43.52 crore Ayushman cards had been generated across the country, indicating wide enrolment under the public health insurance platform and underscoring its centrality to the government’s universal coverage ambition.
In her written reply, Sitharaman provided a snapshot of the health insurance footprint in 2024–25 as reported by IRDAI, underscoring both progress and gaps. There were 2.51 crore individual health insurance policies, including family floaters, covering 6.01 crore people, alongside 13.05 lakh group health insurance policies that extended protection to 27.51 crore members. Together with public schemes, these figures reflect a rapidly expanding risk pool, though still short of the comprehensive coverage target set for 2033.
The finance minister also sought to reassure lawmakers on regulatory oversight amid rapid sectoral growth and rising consumer complaints. She said both private and public insurers are “very systematically and methodically regulated” by IRDAI, which acts against violations such as misuse of dominant position, misleading claims, misrepresentation of product features and failure to ensure suitability of policies sold. In the last three years, multiple insurers have faced monetary penalties ranging from Rs 1 crore to Rs 2 crore for unfair practices, reflecting a more assertive consumer protection stance.
Citing recent enforcement actions, she noted that a Rs 2 crore penalty was imposed on Reliance General Insurance Company in 2023–24 for unfair business practices. Bajaj Finance Ltd and HDFC Life Insurance were each fined Rs 2 crore, while SBI Life Insurance and Royal Sundaram General Insurance faced penalties of Rs 1 crore each. As India moves towards its 2033 target, the combination of expanded coverage, regulatory tightening and targeted schemes for the poor and elderly will be critical in determining whether the promise of health insurance for all translates into real financial protection at the point of care.
