Health insurance reach still low

India’s health insurance segment contributed 0.34 percentage point out of the overall 1 percentage point of general insurance (including health insurance) penetration in the country during FY22, Lok Sabha was informed. During FY22, the number of persons covered under health Insurance stood at 52.04 crore, said Minister of State for Finance Bhagwat Karad in a written reply to a Lok Sabha question. The Minister said insurance regulator IRDAI has informed the government that it has adopted a multi-pronged approach using print and electronic media to enhance consumer awareness on various aspects of insurance, including health insurance on a pan-India basis, encouraging all stakeholders to promote insurance awareness. Despite these efforts, the outcome on health insurance penetration in the country continues to be low, say experts. Bhabatosh Mishra, Director Underwriting, Products and Claims at Niva Bupa Health Insurance, said health insurance penetration in India is “extremely low” due to limited reach, and a lack of awareness and education.