Health insurance for all by 2033: Sitharaman

Union Finance Minister Nirmala Sitharaman on Tuesday said that expanding health insurance coverage remains a key priority for the government, expressing confidence that India will achieve universal insurance coverage by 2033. Speaking in the Rajya Sabha during Question Hour, she highlighted the rapid growth of the insurance sector and the government’s efforts to improve accessibility and affordability.

The minister noted that the sector has already made significant progress, covering around 58 crore lives in 2024-25. Despite this expansion, she acknowledged that insurance penetration in India remains low compared to global standards. The per capita premium in India stands at about USD 97, far below the global average of USD 943. To bridge this gap, the government is focusing on reforms, affordability measures, and policy support aimed at expanding coverage across both urban and rural populations.

Sitharaman said that regulatory steps taken by the Insurance Regulatory and Development Authority of India have played a crucial role in boosting insurance reach, particularly in rural and social sectors. New rules notified in 2024 have strengthened obligations for insurers to expand their presence in underserved areas.

Highlighting market growth, she said the health insurance sector reached a value of Rs 1,17,505 crore in 2024-25. Contributions have been balanced across public sector insurers, private companies, and standalone health insurers. Public insurers contributed Rs 42,420 crore, while private players and standalone firms accounted for Rs 37,752 crore and Rs 37,331 crore respectively.

The government has also introduced policy measures to increase penetration, including a proposal to raise foreign direct investment limits in the insurance sector. Additionally, GST exemption on individual health insurance premiums has helped make policies more affordable for citizens.

Sitharaman emphasized the importance of social security schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana, which provides life cover of Rs 2 lakh at an annual premium of just Rs 436. The scheme has recorded 26.79 crore enrolments and played a significant role during the COVID-19 period in supporting vulnerable populations.

She also highlighted the impact of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, which offers health coverage of Rs 5 lakh per family annually to nearly 12 crore families, representing the bottom 40 per cent of the population. The scheme was expanded in October 2024 to include senior citizens aged 70 years and above, covering an additional 6 crore individuals.

As of February 28, 2026, over 43.52 crore Ayushman cards have been issued nationwide. The minister said these initiatives reflect the government’s commitment to building an inclusive, accessible, and well-regulated health insurance ecosystem, with strict action taken against insurers for violations and unfair practices.