Finance Minister Nirmala Sitharaman on Tuesday said health insurance has become a priority area for the government, expressing hope that the country will achieve universal insurance coverage by 2033 as the sector expands its reach.Responding to supplementary questions during Question Hour in the Rajya Sabha, Sitharaman said the insurance industry has already made significant progress, covering 58 crore people in 2024-25. News agency PTI quoted FM Sitharaman as saying, “Health insurance is a priority for this government. In fact, we are hoping that by 2033 we will have insurance cover for everyone.”He said the insurance market is continuously growing, with total health premium collections reaching Rs 1,17,505 crore in 2024-25. Public sector insurers contributed health premiums worth Rs 42,420 crore, while private insurers contributed Rs 37,752 crore and standalone health insurers contributed Rs 37,331 crore.Highlighting the structural challenges, the minister said India’s per capita insurance premium is lower at US$97 compared to the global average of US$943. “Although 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 pressure.”Sitharaman said the government had introduced a bill in December 2025 to increase foreign direct investment (FDI) in the insurance sector to increase market penetration. He also mentioned the regulatory measures taken by the Insurance Regulatory and Development Authority of India (IRDAI), including the rules notified in 2024 on rural social sector and third party obligations, to expand insurance coverage in rural areas.He said both private and public insurers are subject to systematic regulation by the insurance watchdog. “If there is any wrongdoing by insurance companies, the regulator takes action against them,” he said, noting that many companies have faced penalties for violations in recent years.“If undue influence is exercised by insurance companies by 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 actionable,” Sitharaman said.Citing specific cases, he told 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 imposed 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 there were 251.85 lakh individual health insurance policies covering 6.01 crore people in FY 2024-25, along with 13.05 lakh group policies covering 27.51 crore members.He also highlighted the role of government schemes, saying Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) provides health cover of Rs 5 lakh per family for secondary and tertiary care hospitalization to about 12 crore families, representing the bottom 40 per cent of the population.
