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India Aims for Universal Health Cover by 2033
17 Mar
Summary
- India targets universal health insurance coverage for all citizens by 2033.
- Government plans to increase foreign direct investment in the insurance sector.
- PM Jeevan Jyoti Bima Yojana offers affordable Rs 2 lakh cover for Rs 436 annually.
The Indian government has declared health insurance a key priority, with an ambitious target to ensure coverage for all citizens by 2033. As of March 2026, the insurance sector is expanding, having covered 58 crore lives in the 2024-25 fiscal year. To further deepen the market and increase penetration, the government introduced a Bill in December 2025 to raise Foreign Direct Investment (FDI) in insurance.
Recognizing challenges like low per capita premium compared to global averages, the government is implementing targeted reforms. Health insurance premiums for individuals are GST-exempt, and regulatory measures are pushing for increased rural penetration. The sector's scale is growing, reaching Rs 1,17,505 crore in 2024-25.
Affordable protection is being extended to the most vulnerable through schemes like the PM Jeevan Jyoti Bima Yojana, which offers Rs 2 lakh cover for an annual premium of Rs 436. This initiative has enrolled 26.79 crore individuals. Additionally, the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) provides Rs 5 lakh annual coverage to 12 crore families and was recently expanded to include 6 crore senior citizens.
The insurance regulator, IRDAI, systematically regulates both public and private sector companies. In recent years, penalties have been imposed on insurers for unfair practices, such as Reliance General Insurance, Bajaj Finance, HDFC Life, SBI Life, and Royal Sundaram General Insurance, ensuring accountability within the sector.
