India Will Have Insurance for All by 2033: Nirmala Sitharaman
Noting that health insurance is actually rapidly expanding as a market, she said, “today the sector has already scaled significantly, reaching Rs 1,17,505 crore in 2024-25 and covering 58 crore lives, with balanced contributions from public, private and standalone insurers.”
New Delhi: Union finance minister Nirmala Sitharaman on Tuesday said that health insurance is a priority for this government and it is expected that the country will have insurance for all by 2033. “Health insurance is a priority for this government. In fact, we are hoping that by 2033 we will have insurance cover for all,” she said while replying to supplementary queries during question hour in the Rajya Sabha.
Sitharaman also said that the insurance sector is expanding and during 2024-25, it covered 58 crore lives in the country. “In December 2025, the government came up with a Bill to hike foreign direct investment (FDI) in the insurance sector with an aim to increase its penetration and deepen the market,” the minister said.
She also said that insurance regulator Irdai notified rules for the rural social sector and third-party obligations in 2024 to increase penetration in rural areas. “If you are looking at insurance in general, we have a challenge in that,” she said, adding that the per capita premium is only $97 whereas the global average is $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,” the finance minister said.
Noting that health insurance is actually rapidly expanding as a market, she said, “today the sector has already scaled significantly, reaching Rs 1,17,505 crore in 2024-25 and covering 58 crore lives, with balanced contributions from public, private and standalone insurers.”
“Public sector insurers particularly through health premiums, give cover of worth Rs 42,420 crore, private sector does Rs 37,752 crore and standalone health insurance companies are doing Rs 37,331 crore,” she said, adding that for the poorest of the poor there is PM Jeevan Jyoti Bima Yojana.
Most importantly, she said, PM Jeevan Jyoti Bima Yojana offers protection at just Rs 436 per year for Rs 2 lakh cover, ensuring even the most vulnerable are not left behind. “With 26.79 crore enrolments and proven responsiveness during COVID, India is steadily building a more inclusive, accessible, and resilient health insurance ecosystem,” she noted.