Home India FINANCE Parliament Question: Expansion and Penetration of Insurance...
Date: 2026-02-02 Category: Not Applicable State: Union Government Country: India

Parliament Question: Expansion and Penetration of Insurance Coverage

Issued by FINANCE · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The document answers Starred Question No. *26 in the Lok Sabha on February 2nd, 2026, regarding the expansion and penetration of insurance coverage in India, with a target of bringing all countrymen into the ambit of insurance by 2047. The Finance Minister presented a statement detailing various government schemes and regulatory measures aimed at achieving this goal. No immediate deadlines or action items are explicitly stated for specific stakeholders within the document itself. **Key Points / Main Content** * **Government Social Security Schemes:** * **PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana):** Offers Rs 2 lakh insurance coverage for individuals aged 18-50 at Rs 436 annual premium; 26.32 crore cumulative enrolments as of 07.01.2026, with 54.13% being women beneficiaries. * **PMSBY (Pradhan Mantri Suraksha Bima Yojana):** Provides Rs 2 lakh for accidental death/total disability and Rs 1 lakh for partial disability for individuals aged 18-70 at Rs 20 annual premium; 56.15 crore cumulative enrolments as of 07.01.2026, with 50.58% being women beneficiaries. * **PMJAY (Pradhan Mantri Jan Arogya Yojana):** Offers Rs 5 lakh health cover per family per year for secondary and tertiary care; expanded to include senior citizens with Vay Vandana Card; 43.13 crore Ayushman cards created as of 28.01.2026, with 21.26 crore to women. * **PMFBY (Pradhan Mantri Fasal Bima Yojana):** Safeguards farmers against crop losses from natural hazards; premium capped at 2% for Kharif, 1.5% for Rabi, and 5% for commercial/horticultural crops; 15.14 crore applications enrolled during FY 2024-25. * **Regulatory and Legislative Measures:** * **Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025:** Enacted to enhance citizen protection, deepen insurance penetration, and accelerate growth in the insurance sector. * **IRDAI's Initiatives:** * Mandated insurers to devise products for all age and risk groups. * Reduced compliance burden and simplified regulations for insurers. * Mandated insurers to not increase premiums for senior citizens by more than 10% per year. * Established effective grievance redressal mechanisms for policyholder protection. * Notified IRDAI (Rural and Social Sector, Motor Third Party Obligations) Regulations, 2024 specifying minimum business insurers must underwrite in rural and social sectors. * **Awareness Campaigns:** * Pan-India insurance awareness campaign launched by the General Insurance Council with the tagline "Achha Kiya Insurance Liya." * Insurance companies collaborate with digital platforms and InsurTechs. * LIC launched the Bima Sakhi Yojana (Mahila Career Agent Scheme) on 09.12.2024 to increase rural insurance coverage. **Impact Analysis** **Citizens (especially low-income groups):** * **Impact:** Citizens have access to affordable insurance products and increased awareness of available schemes. * **Action Required:** Enrol in the appropriate insurance schemes and understand their benefits. **Farmers:** * **Impact:** Protected against crop losses due to unpredictable natural hazards. * **Action Required:** Enrol in the PMFBY scheme. **Senior Citizens:** * **Impact:** Have increased protection in insurance coverage with an emphasis on affordability. * **Action Required:** Enrol in the PMJJBY or PMSBY scheme if eligible and be aware that any premium increase is capped. **Insurers (Public and Private):** * **Impact:** Required to design products for all demographics, comply with new regulations, and increase insurance penetration in rural/social sectors. * **Action Required:** Comply with IRDAI mandates, develop products for all age and risk groups, and focus on rural and social sector business. **Women:** * **Impact:** Access to more inclusive insurance schemes which encourage women enrolment. * **Action Required:** Enrol in insurance schemes, and ensure accessibility to healthcare. **Insurance Regulatory and Development Authority of India (IRDAI):** * **Impact:** Responsible for implementing and monitoring regulatory changes to deepen insurance inclusion and ease business operations. * **Action Required:** Enforce the new mandates, monitor insurer compliance, and continue to refine regulations. **Digital Platforms and InsurTechs:** * **Impact:** Enhanced role in marketing insurance products and increasing accessibility. * **Action Required:** Collaborate with insurance companies to market insurance products with the goal of enhanced subscription.

Key Entities Referenced

Insurance Regulatory and Development Authority of India (IRDAI): The regulator for the insurance sector in India, responsible for increasing insurance penetration and density. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): A social security scheme offering life insurance coverage for individuals aged 18-50. Pradhan Mantri Suraksha Bima Yojana (PMSBY): A social security scheme offering accidental death and disability insurance coverage for individuals aged 18-70. Pradhan Mantri Jan Arogya Yojana (PMJAY): A health insurance scheme providing coverage for secondary and tertiary care hospitalisation. Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025: A recent act aimed at enhancing citizen protection and deepening insurance penetration.
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GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA STARRED QUESTION NO. *26 ANSWERED ON MONDAY, 2ND 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. ******STATEMENT REFERRED TO IN REPLY TO PART (a) to (e) OF LOK SABHA STARRED QUESTION NO. *26 FOR 2nd 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 companiesiii. 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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