Health Insurance Priority For Govt, Universal Cover Targeted By 2033: Sitharaman

Health insurance is a priority for the government , with the goal of providing coverage for all citizens by 2033 , Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Tuesday. Replying to supplementary questions during Question Hour, she noted that the insurance sector is expanding rapidly, covering 58 crore lives in 2024-25.

Sitharaman highlighted that in December 2025, the government introduced a Bill to hike FDI in insurance, aimed at increasing penetration and deepening the market. The Insurance Regulatory and Development Authority of India (IRDAI) also notified rules in 2024 for the rural social sector and third-party obligations to promote insurance in rural areas.

The minister acknowledged that India faces a challenge in insurance penetration, with per capita premiums at USD 97 , far below the global average of USD 943. She added that the government is actively bridging this gap through targeted reforms, GST exemption on individual premiums , expansion of coverage, and regulatory initiatives.

The health insurance market has grown to Rs 1,17,505 crore , with contributions from public, private, and standalone insurers. Public sector insurers contributed Rs 42,420 crore , private sector Rs 37,752 crore, and standalone health insurers Rs 37,331 crore. For the poorest, PM Jeevan Jyoti Bima Yojana offers protection at Rs 436 per year for a Rs 2 lakh cover, ensuring inclusion for vulnerable groups. The scheme has 26.79 crore enrolments and showed strong responsiveness during COVID-19.

Sitharaman stressed that both private and public insurers are systematically regulated by IRDAI , with violations promptly penalised. Over the past three years, fines of Rs 1-2 crore were imposed on companies including Reliance General Insurance, Bajaj Finance, HDFC Life, SBI Life, and Royal Sundaram General Insurance for unfair practices.

For FY 2024-25, IRDAI data shows 251.85 lakh individual health policies , covering 6.01 crore people, and 13.05 lakh group policies , covering 27.51 crore members. The Ayushman Bharat PMJAY provides Rs 5 lakh coverage per family, extended in October 2024 to 6 crore senior citizens , irrespective of socio-economic status. As of February 28, 2026, a total of 43.52 crore Ayushman cards have been issued nationwide, reflecting India’s steady progress toward a more inclusive and resilient health insurance ecosystem .