Kamal Ghorui
Health insurance has become a priority area for the government, finance minister Nirmala Sitharaman said on Tuesday, expressing hope that the country would achieve universal insurance coverage by 2033 as the sector expands its reach.Replying to supplementary queries during Question Hour in the Rajya Sabha, Sitharaman said the insurance industry had already made significant progress, covering 58 crore lives in 2024–25. “Health insurance is a priority for this government. In fact, we are hoping that by 2033 we will have insurance cover for all,” FM Sitharaman was quoted as saying by news agency PTI .She noted that the insurance market is growing steadily, with total health premium collections reaching Rs 1,17,505 crore in 2024–25. Public sector insurers accounted for health premiums of Rs 42,420 crore, while private insurers contributed Rs 37,752 crore and standalone health insurers Rs 37,331 crore.Highlighting structural challenges, the minister said India’s per capita insurance premium remains low at USD 97 compared with the global average of USD 943. “While penetration remains low, the government is actively bridging this gap through targeted reforms and affordability measures. Health insurance is now a clear priority with GST exemption on individual premiums, expansion of coverage and strong regulatory push driving the momentum,” she said.Sitharaman said the government had introduced a Bill in December 2025 to increase foreign direct investment (FDI) in the insurance sector to deepen market penetration. She also referred to regulatory measures taken by the Insurance Regulatory and Development Authority of India (IRDAI), including rules notified in 2024 on rural social sector and third-party obligations to expand insurance coverage in rural areas.She added that both private and public insurers are subject to systematic regulation by the insurance watchdog. “If there are any wrongdoings by insurance companies, the regulator acts upon them,” she said, noting that several companies had faced penalties in recent years for violations.“If there is undue influence by insurance companies using their dominant position, or when they make false and misleading claims, misrepresent facts, omit key features while selling insurance, or fail to ensure suitability of the policy, all such acts of omission and commission are acted upon,” Sitharaman said.Citing specific cases, she informed the House that a penalty of Rs 2 crore was imposed on Reliance General Insurance Company in 2023–24 for unfair business practices. Similar penalties were levied on Bajaj Finance Ltd (Rs 2 crore), HDFC Life Insurance (Rs 2 crore), SBI Life Insurance (Rs 1 crore) and Royal Sundaram General Insurance (Rs 1 crore).In a written reply, the minister said that in FY 2024–25 there were 251.85 lakh individual health insurance policies covering 6.01 crore people, along with 13.05 lakh group policies covering 27.51 crore members.She also highlighted the role of government schemes, stating that Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) provides health cover of Rs 5 lakh per family per year for secondary and tertiary care hospitalisation to about 12 crore families, representing the bottom 40 per cent of the population.
