Government Aims for Universal Health Insurance by 2033
Universal Health Insurance Initiative
New Delhi, Mar 17: During a session in the Rajya Sabha, Finance Minister Nirmala Sitharaman emphasized that health insurance is a key focus for the government, with aspirations to achieve universal coverage by 2033.
Responding to questions during the Question Hour, she noted that the insurance sector is on an upward trajectory, with projections indicating that it will cover 580 million lives by the fiscal year 2024-25.
"Health insurance is a priority for this government. We are optimistic about providing insurance for everyone by 2033," she stated.
In December 2025, the government introduced a Bill aimed at increasing foreign direct investment (FDI) in the insurance sector to enhance market penetration.
She mentioned that the Insurance Regulatory and Development Authority of India (IRDAI) has established regulations for the rural social sector and third-party obligations in 2024 to boost insurance access in rural communities.
"When considering insurance overall, we face challenges," she remarked, highlighting that the per capita premium in India stands at only USD 97, compared to the global average of USD 943.
"Despite low penetration, the government is making strides to address this through targeted reforms and affordability initiatives. Health insurance is now a significant focus, supported by GST exemptions on individual premiums, expanded coverage, and a robust regulatory framework," the finance minister added.
She pointed out that the health insurance market is rapidly growing, having reached a valuation of Rs 1,17,505 crore in 2024-25, covering 580 million lives, with contributions from public, private, and standalone insurers.
"Public sector insurers provide coverage worth Rs 42,420 crore through health premiums, while private sector insurers contribute Rs 37,752 crore, and standalone health insurance companies account for Rs 37,331 crore," Sitharaman explained, noting the PM Jeevan Jyoti Bima Yojana for the economically disadvantaged.
In her written response, she stated that according to the IRDAI, there were 2.5185 million individual health insurance policies for FY 2024-25, covering 60.1 million individuals, along with 1.305 million group health insurance policies covering 275.1 million members.
She also highlighted the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), which offers health insurance coverage of Rs 5 lakh per family annually for secondary and tertiary care hospitalization to 120 million families, representing the bottom 40% of the population.
In October 2024, the scheme was expanded to include 60 million senior citizens aged 70 and above from 45 million families, regardless of their socio-economic status. "As of February 28, 2026, a total of 435.2 million Ayushman cards have been issued nationwide," she concluded.