The Union government on Monday said it is steadily expanding the reach of affordable insurance across the country through a mix of low-premium social security schemes, regulatory reforms and digital outreach, with the long-term objective of bringing every citizen under some form of insurance protection by 2047.

Replying to a starred question in the Lok Sabha, Finance Minister Nirmala Sitharaman informed the House that multiple government-backed schemes are already in operation to provide life, accident, health and crop insurance, particularly targeting low-income households, women, farmers and senior citizens. The government, she said, has been conducting regular awareness drives at the grassroots level in coordination with banks and local administrations to improve enrolment and ensure deeper penetration.

Among the largest initiatives is the Pradhan Mantri Jeevan Jyoti Bima Yojana, a life insurance scheme that provides a cover of Rs 2 lakh in the event of death from any cause for individuals between 18 and 50 years of age, at an annual premium of Rs 436. Since its launch, the scheme has recorded cumulative enrolments of 26.32 crore as of early January this year. Of these, more than 12 crore beneficiaries, accounting for over 54 per cent of the active enrolments, are women.

Accident insurance coverage is being provided through the Pradhan Mantri Suraksha Bima Yojana, which offers Rs 2 lakh for accidental death or total permanent disability and Rs 1 lakh for partial disability at a premium of Rs 20 per year for individuals aged 18 to 70. The scheme has seen even wider participation, with cumulative enrolments reaching 56.15 crore. Women constitute over half of the current subscribers, numbering 26.49 crore.

Health protection for vulnerable families is being delivered through the Pradhan Mantri Jan Arogya Yojana under Ayushman Bharat, which provides a hospitalisation cover of Rs 5 lakh per family annually for secondary and tertiary care. The government has also expanded the scheme to include around 6 crore senior citizens aged 70 years and above, irrespective of socio-economic status, through special cards. As of late January, more than 43 crore Ayushman cards had been issued nationwide, including over 21 crore to women beneficiaries.

For farmers, the Pradhan Mantri Fasal Bima Yojana continues to serve as a safeguard against crop losses arising from natural calamities. Under this programme, farmers’ premium contributions are capped at 2 per cent for Kharif crops, 1.5 per cent for Rabi crops and 5 per cent for commercial and horticultural crops, with the balance subsidised by the government. Enrolments during the 2024–25 financial year rose to 15.14 crore applications, reflecting an increase over the previous year.

The minister also pointed to recent legislative and regulatory measures aimed at strengthening the insurance ecosystem. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, has been enacted to enhance policyholder protection, promote competition and accelerate the growth of the sector. The Insurance Regulatory and Development Authority of India has been tasked with easing compliance requirements, simplifying regulations and encouraging insurers to design products that cater to all age groups and risk categories.

Insurers have also been directed to limit annual premium hikes for senior citizens to no more than 10 per cent and to maintain effective grievance redressal systems. Separate regulations now require companies to underwrite a minimum level of business in rural and social sectors to ensure that insurance services reach underserved regions.

The government is increasingly relying on digital platforms and InsurTech partnerships to widen access, enabling easier enrolment and policy management. A nationwide awareness campaign launched last year by the General Insurance Council has sought to promote insurance literacy through television, digital and outdoor media. In addition, the Life Insurance Corporation has rolled out the Bima Sakhi Yojana, aimed at recruiting women agents in rural areas to expand coverage and create livelihood opportunities.

Taken together, these initiatives represent what the government describes as a comprehensive strategy to make insurance cheaper, more accessible and universal. With hundreds of crores of cumulative enrolments already recorded across life, accident, health and crop insurance schemes, the Centre said it intends to continue expanding coverage until financial protection through insurance becomes a standard safeguard for every household in the country.

Source - https://kashmirlife.net