FM Sitharaman Outlines Government Roadmap for Universal Health Coverage by 2033
Health insurance has emerged as a key focus for the Indian government, with Finance Minister Nirmala Sitharaman expressing optimism about achieving universal coverage by 2033. During a recent session in the Rajya Sabha, she highlighted the significant strides made in the sector, noting that health insurance currently covers 58 crore lives. Sitharaman emphasized the government’s commitment to expanding insurance access, as evidenced by the rising health premium collections, which reached Rs 1,17,505 crore for the fiscal year 2024-25.
Growth of the Health Insurance Sector
The health insurance market in India is experiencing steady growth, with contributions from both public and private sectors. In the fiscal year 2024-25, public sector insurers generated health premiums amounting to Rs 42,420 crore. Meanwhile, private insurers contributed Rs 37,752 crore, and standalone health insurers added Rs 37,331 crore to the total. Despite this growth, Sitharaman pointed out that the per capita insurance premium in India remains low at USD 97, significantly below the global average of USD 943. The government is actively working to address this disparity through targeted reforms and measures aimed at enhancing affordability.
Sitharaman reiterated that health insurance is a top priority for the government. She mentioned the introduction of a Bill in December 2025 to increase foreign direct investment (FDI) in the insurance sector, which is expected to deepen market penetration. Additionally, the Insurance Regulatory and Development Authority of India (IRDAI) has implemented regulatory measures to expand insurance coverage, particularly in rural areas, where access to health insurance has traditionally been limited.
Regulatory Oversight and Consumer Protection
The Finance Minister underscored the importance of regulatory oversight in the insurance sector. She assured that both private and public insurers are subject to stringent regulations enforced by the IRDAI. Sitharaman emphasized that any misconduct by insurance companies is met with appropriate action from the regulator. Recent years have seen several companies penalized for violations, including misleading claims and unfair business practices.
For instance, Reliance General Insurance Company faced a penalty of Rs 2 crore in 2023-24 for engaging in unfair business practices. Other companies, such as Bajaj Finance Ltd, HDFC Life Insurance, SBI Life Insurance, and Royal Sundaram General Insurance, also received penalties ranging from Rs 1 crore to Rs 2 crore for similar offenses. Sitharaman’s remarks highlight the government’s commitment to ensuring transparency and accountability within the insurance industry.
Impact of Government Schemes
Sitharaman also highlighted the role of government initiatives in expanding health insurance coverage. The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) is a significant program that provides health coverage of Rs 5 lakh per family per year for secondary and tertiary care hospitalization. This scheme aims to benefit approximately 12 crore families, representing the bottom 40 percent of the population.
In the fiscal year 2024-25, there were 251.85 lakh individual health insurance policies in force, covering 6.01 crore people. Additionally, 13.05 lakh group policies provided coverage for 27.51 crore members. These figures reflect the government’s ongoing efforts to enhance access to health insurance and improve the overall health infrastructure in the country. As the sector continues to evolve, the government remains focused on bridging the existing gaps in coverage and ensuring that health insurance becomes a reality for all citizens by 2033.
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