Lok Sabha Question No. 26 (STARRED), answered on 2026-02-02
Subject: Expansion and Penetration  of Insurance Coverage
Ministry: FINANCE
Asked by: Shri Sudheer Gupta, Shri Chavan Ravindra Vasantrao

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA STARRED QUESTION NO. *26

ANSWERED ON MONDAY, 2 ND  FEBRUARY, 2026/ MAGHA 13, 1947 (SAKA)

## Expansion and Penetration of Insurance Coverage

*26. SHRI CHAVAN RAVINDRA VASANTRAO: SHRI SUDHEER GUPTA:

Will the Minister of FINANCE be pleased to state:

(a)  whether  the  Government  is  planning  to  make  insurance  products  cheaper  and expand the ambit and penetration of insurance coverage by bringing all countrymen in the ambit of insurance by 2047; (b)  if so, the details thereof, including the proposed policy measures, regulatory reforms and incentives aimed at achieving the desired target by 2047; (c)  whether  any  steps  are  being  taken  by  the  Government  to  increase  insurance coverage among women in the country and if so, the details thereof; (d)  the details of the role envisaged for public and private insurance companies, digital platforms and InsurTech in achieving wider and affordable insurance coverage; and (e)  the  steps  taken  by  the  Government  to  bring  more  persons  under  insurance coverage?

## ANSWER

THE FINANCE MINISTER

(SMT. NIRMALA SITHARAMAN) (a) to (e): A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (e)  OF  LOK  SABHA STARRED QUESTION NO. *26 FOR 2 nd FEBRUARY, 2026 REGARDING 'EXPANSION AND PENETRATION OF INSURANCE COVERAGE' TABLED BY SHRI CHAVAN RAVINDRA VASANTRAO, SHRI SUDHEER GUPTA, HON'BLE MEMBER(S) OF PARLIAMENT

The  Government  has  launched  various  social  security  schemes  to  offer  affordable insurance coverage to all the citizens, including citizens of low-income groups. Regular campaigns are held from time to time at grass root level with active participation of banks and  local  administration  to  spread  awareness  about  these  schemes.  The  salient features of these schemes are as under:

- i.  Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers insurance coverage of Rs 2 lakhs to the people in the age group of 18-50 years in case of death of the insured, due to  any  reason,  at  an  annual  premium  of  Rs  436/-.  As  on  07.01.2026,  cumulative enrolments under PMJJBY, since its inception, stand at 26.32 crore. Further, as reported by banks, 12.13 crore out of 22.41 crore enrolments (54.13%) are women beneficiaries.
- ii.  Pradhan  Mantri  Suraksha  Bima  Yojana  (PMSBY)  offers  insurance  coverage  to  the people in the age group of 18-70 years for Rs. 2 lakhs in case of accidental death or total permanent disability and Rs. 1 lakh for partial permanent disability; due to accident, at a premium of Rs. 20 per annum. As on 07.01.2026, cumulative enrolments under PMSBY, since its inception, stand at 56.15 crore. Further, as reported by banks, 26.49 crore out of 52.36 crore enrolments (50.58%) are women beneficiaries.
- iii.  Pradhan Mantri Jan Arogya Yojana (PMJAY) offers a health cover of ₹5 lakh per family per year for secondary and tertiary care hospitalisation. The scheme ensures equitable coverage  for  all  members  of  the  family,  including  women.  The  scheme  was  then expanded to cover 6 crore senior citizens of age 70 years and above belonging to 4.5 crore  families  irrespective  of  their  socio-economic  status  under  PMJAY  with  Vay Vandana Card.  As on 28.01.2026, total number of 43.13 crore Ayushman cards have been created under the scheme, out of which 21.26 crore belong to women.
- iv.  Pradhan Mantri Fasal Bima Yojana (PMFBY) offers safeguards to farmers against crop losses caused by unpredictable natural hazards. Under the scheme, premium paid by farmers is capped at 2% for Kharif, 1.5% for Rabi and 5% for commercial/horticultural crops. Applications enrolled under the scheme during FY 2024-25 stand at 15.14 crore, which is up from 14.36 crore applications during FY 2023-24.

Further, the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 has been enacted recently with a view to enhance citizens protection, deepen insurance penetration and accelerate growth and development of the insurance sector.

In order to increase the penetration and density of Insurance in India, in alignment with the vision of Insurance for all, the Insurance Regulatory and Development Authority of India (IRDAI) has: -

- i.  mandated insurers to devise product for all age and risk groups to deepen insurance inclusion
- ii.  reduced  compliance  burden  and  simplified  regulations  to  promote  ease  of  doing business for insurance companies
- iii.  mandated insurers to not increase premium for senior citizens by more than 10% per year
- iv.  put  in  place  an  effective  grievance  redressal  mechanism  to  ensure  policy  holder protection
- v.  IRDAI (Rural and Social Sector, Motor Third Party Obligations) Regulations, 2024 have been notified, which specify the minimum business that the insurers are required to underwrite in rural and social sector in order to deepen insurance penetration in these areas.

A pan India insurance awareness and education campaign has also been launched by General Insurance Council in May 2025, with the tagline 'Achha Kiya Insurance Liya'. The multi-platform insurance awareness campaign has been disseminated nationwide through  television,  digital  platforms  and  outdoor  media.  Insurance  companies  are regularly  collaborating  with  digital  platforms  and  InsurTechs  in  order  to  market  their insurance products for enhanced subscription and better accessibility to public across the country. Besides this, Life Insurance Corporation of India has launched the Bima Sakhi Yojana (Mahila Career Agent Scheme) on 09.12.2024 with an aim to increase rural insurance coverage.

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