Gov Targets Universal Health Insurance Coverage by 2033, Says Finance Minister

Union Finance Minister Nirmala Sitharaman has said that health insurance is a priority for the government, with efforts underway to achieve insurance coverage for all by 2033.

Speaking in the Rajya Sabha during Question Hour, she said, "Health insurance is a priority for this government. In fact, we are hoping that by 2033 we will have insurance cover for all."

The minister said the government has undertaken a major rural outreach plan to expand health insurance access. Under this initiative, 25,000 gram panchayats will be covered across the country.

She added that the Insurance Regulatory and Development Authority of India has notified rules in 2024 under which gram panchayats will be treated as the basic unit for measuring insurance coverage and rural obligations.

Highlighting the expansion of the sector, Sitharaman said the health insurance market recorded 1,17,505 crore rupees in 2024-25 and currently covers 58 crore lives. She noted that both public and private insurers, along with standalone health insurance companies, are contributing to this growth.

The minister also pointed out that India’s per capita insurance premium stands at 97 dollars compared to the global average of 943 dollars, indicating the need to improve insurance penetration.

Further, the Finance Minister noted that the government is focused on keeping insurance affordable, particularly for vulnerable sections of the population.

Referring to social security initiatives, she said the Pradhan Mantri Jeevan Jyoti Bima Yojana provides life insurance cover of 2 lakh rupees at an annual premium of 436 rupees and has recorded 26.79 crore enrolments.

She also highlighted the role of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, which provides health insurance coverage of 5 lakh rupees per family annually for secondary and tertiary care hospitalisation to 12 crore families. The scheme has also been expanded to cover senior citizens aged 70 years and above.

The minister stated that insurance companies are regulated by the Insurance Regulatory and Development Authority of India, which takes action in cases of violations.

She cited instances where penalties were imposed on insurance companies for unfair practices, including fines ranging from 1 crore rupees to 2 crore rupees.

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