FM Sitharaman says health insurance is a priority, aims universal coverage by 2033

Health insurance is a key focus for the government, and the aim is to cover every citizen by 2033, Finance Minister Nirmala Sitharaman told the Rajya Sabha on Tuesday.

The sector is rapidly expanding. In 2024-25, health insurance covered 58 crore lives, with premiums totalling ₹1,17,505 crore across public, private, and standalone insurers. "Public sector insurers, particularly through health premiums, give cover of worth ₹42,420 crore, the private sector does ₹37,752 crore, and standalone health insurance companies are doing ₹37,331 crore," Sitharaman added.

Affordability is being prioritised, with measures like GST exemption on individual premiums and PM Jeevan Jyoti Bima Yojana offering ₹2 lakh cover at just ₹436 per year. "With 26.79 crore enrolments and proven responsiveness during COVID, India is steadily building a more inclusive, accessible, and resilient health insurance ecosystem," the minister noted.

Sitharaman emphasised strong regulatory oversight. "If there is undue influence by insurance companies using their dominant position… all such acts of omission and commission are acted upon. For instance, in 2023-24, a penalty of Rs 2 crore was levied on Reliance General Insurance Company for unfair business practices. Similarly, penalties have been imposed on other companies including Bajaj Finance Ltd - ₹ 2 crore, HDFC Life Insurance - ₹2 crore, SBI Life Insurance - ₹1 crore, and Royal Sundaram General Insurance - ₹ 1 crore," she informed the House.

Schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana now cover ₹5 lakh per family per year, reaching 12 crore families, with expansions for 6 crore senior citizens. "As on 28.02.2026, a total of 43.52 crore Ayushman cards have been created across the country," she said.

For individuals and families, these developments signal not just greater coverage but a pathway to financial resilience against health emergencies.