Union Finance Minister Nirmala Sitharaman has reaffirmed the government’s commitment to making health insurance accessible to every citizen by 2033, highlighting an ambitious roadmap focused on rural outreach, affordability, and policy reforms.
Speaking in the Rajya Sabha during Question Hour, Sitharaman emphasized that health insurance remains a top priority for the government. She announced that a large-scale rural initiative is underway, aiming to extend insurance coverage to 25,000 gram panchayats across the country. The move is expected to significantly strengthen the reach of insurance services in underserved areas.
The Finance Minister noted that the Insurance Regulatory and Development Authority of India (IRDAI) has introduced new rules in 2024 that designate gram panchayats as the basic unit for assessing insurance coverage and fulfilling rural obligations. This shift is intended to streamline monitoring and ensure deeper penetration of insurance schemes at the grassroots level.
Highlighting the challenges ahead, Sitharaman pointed out that India’s insurance penetration remains significantly lower than global standards. The country’s per capita insurance premium stands at just $97, compared to the global average of $943. However, she also underscored the rapid growth of the sector, revealing that the health insurance market recorded ₹1,17,505 crore in 2024–25 and currently covers 58 crore lives under various schemes.
She credited the combined efforts of public and private insurers, along with government-backed companies, for driving this expansion. At the same time, the government is focused on maintaining affordability, particularly for economically weaker sections, to ensure inclusive growth in insurance coverage.
Referring to key social security initiatives, Sitharaman highlighted the success of the Pradhan Mantri Jeevan Jyoti Bima Yojana. The scheme offers a life insurance cover of ₹2 lakh at an annual premium of just ₹436, making it highly accessible to low-income households. With 26.79 crore cumulative enrolments, the scheme reflects the government’s push toward broader financial inclusion and social protection.
The government’s multi-pronged strategy—combining regulatory reforms, rural expansion, and affordable schemes—signals a determined effort to bridge the insurance gap and move closer to universal health coverage in the coming decade.
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