Union Finance Minister Nirmala Sitharaman has said health insurance remains a priority for the government, with efforts underway to provide insurance coverage to all citizens by 2033. (News On Air)
Speaking in the Rajya Sabha during Question Hour, Sitharaman said the government has undertaken a major rural outreach initiative under which 25,000 gram panchayats will be covered for health insurance across the country. The initiative forms part of wider efforts to expand insurance access, particularly in rural areas. (News On Air)
The Finance Minister said the Insurance Regulatory and Development Authority of India (IRDAI) had notified rules in 2024 under which the gram panchayat would be treated as the basic unit for measuring insurance coverage and fulfilling rural insurance obligations. (News On Air)
Highlighting the relatively low level of insurance penetration in India, Sitharaman said the country’s per capita insurance premium stands at $97, including health insurance, compared with a global average of $943. (News On Air)
Health insurance business in India has nevertheless been expanding. According to the Finance Minister, the sector recorded business of ₹1,17,505 crore in 2024-25, while approximately 58 crore lives were covered under various health insurance schemes. (News On Air)
She said public and private insurers, along with government-backed insurance companies, are contributing to widening insurance coverage. The government is also focusing on keeping premiums affordable, particularly for economically weaker and vulnerable sections of society. (News On Air)
Referring to broader social security initiatives, Sitharaman highlighted the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which provides life insurance cover of ₹2 lakh for an annual premium of ₹436. The scheme has recorded 26.79 crore cumulative enrolments, reflecting the government’s efforts to strengthen financial and social protection among lower-income households. (News On Air)
The government’s 2033 target underlines the growing policy emphasis on improving insurance penetration and extending affordable protection to underserved sections of the population, particularly in rural India.
