Health insurance for all by 2033, Finance Minister Nirmala Sitharaman stated in the Rajya Sabha on Tuesday that health insurance is a priority for the government, and that the government hopes to provide health insurance coverage to every citizen by 2033. Responding to supplementary questions during Question Hour, she said the insurance sector is expanding rapidly in the country, with approximately 580 million people receiving insurance coverage in 2024-25.
Health Insurance: Steps to Boost Health Insurance & FDI Reforms
The Finance Minister said that the government is continuously taking steps to promote health insurance. She said that in December 2025, the government introduced a bill to increase the foreign investment (FDI) limit in the insurance sector, so that investment in this sector increases and insurance services become accessible to more people.
Health Insurance: Focus on Rural and Social Sector Insurance Penetration
Emphasis on increasing insurance penetration in rural areas The Finance Minister said that the Insurance Regulatory and Development Authority of India (IRDAI) has issued new regulations for Rural and Social sectors in 2024. These are aimed at increasing access to insurance services in rural areas and broadening insurance coverage.
Challenges in India’s Insurance Sector vs Global Standards
She said that the insurance sector in India still faces significant challenges. Per capita insurance premiums in the country are only $97, compared to the global average of approximately $943. However, the government is working to narrow this gap through various reforms and affordable insurance plans.
Growth Driven by GST Exemption & Policy Reforms
Mrs Sitharaman said the sector is growing rapidly due to GST exemption on individual health insurance premiums, expansion of coverage and regulatory reforms. The size of the health insurance market has grown rapidly. According to the Finance Minister, India's health insurance market is growing rapidly, with the sector projected to reach Rs 1,17,505 crore in size and cover 58 crore people in FY2024-25.
Public vs Private Sector Contribution in Insurance
Both the public and private sectors have contributed to this. He said that public sector insurance companies provided coverage of Rs 42,420 crore through health premiums, while private insurance companies contributed Rs 37,752 crore and standalone health insurance companies contributed Rs 37,331 crore.
Government Schemes Supporting the Poor
Support of government schemes for the poor,The Finance Minister said that the government is running several schemes for the poorest sections of society. These include the Pradhan Mantri Jeevan Jyoti Bima Yojana, which provides insurance coverage of Rs 2 lakh for an annual premium of just Rs 436. So far, 26.79 crore people have enrolled in this scheme.Additionally, the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (Ayushman Bharat Pradhan Mantri Jan Arogya Yojana) provides health insurance coverage of up to ₹5 lakh per family per year. This scheme covers approximately 120 million poor families in the country, representing the bottom 40% of India's population.
Expansion for Senior Citizens Above 70
The government expanded the scheme in October 2024 to include 6 crore senior citizens over the age of 70. As of February 28, 2026, 43.52 crore Ayushman cards have been issued across the country. According to the Finance Minister, India's Insurance sector projected to reach Rs 1,17,505 करोड़. Both the public and private sectors companies provided coverage of Rs 42,420 insurance companies contributed Rs 37,752 contributed Rs 37,331 crore.Read More-
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