Lok Sabha Question No. 702 (UNSTARRED), answered on 2022-02-07
Subject: Health Insurance
Ministry: FINANCE
Asked by: Jayadev Galla, Kinjarapu Ram Mohan Naidu, Vincent H Pala

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 702

ANSWERED ON - 7.2.2022

## HEALTH INSURANCE

702. SHRI JAYADEV GALLA: SHRI RAM MOHAN NAIDU KINJARAPU: SHRI VINCENT H. PALA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government acknowledges the fact that nearly 30 per cent or 42 crore of the  Indian  population  is  devoid  of  any  health  insurance  as  per  NITI  Aayog  'Health Insurance for India's Missing Middle' report;
- (b) if  so,  the  details  thereof  and  the  reasons  for  nearly  one-third  of  the  population  not having  health  insurance  despite  the  presence  of  multiple  insurance  schemes  under the Government;
- (c) if  not,  the  reasons  for  non-acceptance  of  the  report  along  with  the  details  of  the number of persons having health insurance in the country especially from the middleincome group;
- (d) whether the Government has any plans of making health insurance compulsory for the citizens across the country;
- (e) if so, the details of such a plan along with the implementation timeline; and
- (f)  if  not,  the  steps  likely  to  be  taken  by  the  Government  to  increase  insurance penetration in the middle-income groups apart from the existing insurance schemes?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

(a)  to  (f):  NITI  Aayog,  in  its  report  titled  'Health  Insurance  for  India's  Missing  Middle', published and placed in the public domain this year, states that 40 crore individuals are devoid of health protection through insurance. As per the report, low awareness of health insurance  products,  difficulty  in  reaching  out  to  potential  customers  and  their  high sensitivity to price are some of the challenges that determine their insurance coverage.

The  recommendations  in  the  report  relate  to  possible  pathways  to  increase  health insurance coverage on commercial basis to reduce operational and distribution costs and increase enrolment, and to strengthen regulatory mechanisms for policyholder confidence.

Expansion of health insurance on commercial basis lies in the domain of insurers, which draw up their business and growth strategies with the approval of their respective Boards, and economies of scale from such expansion help bring in cost efficiencies. As the report is in the public domain, the insurance industry may take into account the recommendations made therein.

Strengthening of regulatory mechanisms for policyholder protection is a function vested by the Insurance Regulatory and Development Authority Act, 1999 in the insurance regulator, which reviews regulations on an ongoing basis in light of the experience of their working and the needs of insurance industry.

While  there  is  no  proposal  under  consideration  of  the  Government  to  make  health insurance  compulsory  and  public  health  is  a  State  subject  and  State  Governments accordingly initiate public health interventions from time to time, the Central Government has  launched  Ayushman  Bharat  -  Pradhan  Mantri  Jan  Arogya  Yojana  as  a  centrally sponsored scheme for an annual family health cover of Rs. 5 lakh for 10.74 crore families (approximately  50  crore  beneficiaries),  thereby  massively  expanding  health  insurance coverage.  Further,  under  Ayushman  Bharat  -Health  and  Wellness  Centres  scheme, comprehensive  need-based  healthcare  services  covering  maternal  and  child  health services  and  non-communicable diseases, including free essential drugs  and  diagnostic services  are  provided  free  of  cost  to  all  citizens  of  the  country.  Central  Government supports provision of healthcare services to citizens under a number of other schemes as well. Moreover, primary, secondary and tertiary healthcare services are free for all citizens in Central Government and State Government healthcare institutions.

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