The central government has said it is taking several steps to make insurance more affordable and bring more people under insurance cover as part of its long-term vision of achieving “Insurance for All” by 2047.
Replying to a question in the Lok Sabha, the Ministry of Finance said the government is relying on affordable insurance schemes, tax relief, legal reforms, awareness campaigns and women’s participation to expand insurance coverage across the country.
Affordable insurance schemes remain the foundation
The government said two flagship social security schemes launched in 2015 continue to play a key role in expanding insurance coverage.
These are Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which provides life insurance cover in case of death due to any reason for an annual premium of Rs 436; and Pradhan Mantri Suraksha Bima Yojana (PMSBY), which offers accidental death and disability insurance for an annual premium of Rs 20.
According to the Finance Ministry, these schemes were introduced to provide affordable insurance protection, especially to poor and underprivileged sections of society.
To increase enrolment, regular awareness and enrolment drives are being conducted at the Gram Panchayat level across the country, including Maharashtra, with the help of banks and local administrations.
Financial Inclusion campaign launched
The government also highlighted a nationwide Financial Inclusion Saturation Campaign that ran from July 1, 2025, to October 31, 2025.
The four-month campaign covered around 2.70 lakh Gram Panchayats and Urban Local Bodies (ULBs) across the country.
According to the government, the campaign aimed to increase enrolment under PMJJBY and PMSBY.
Reduce pending insurance claims.
Ensure quicker disbursal of benefits to eligible beneficiaries.
As of July 1, 2026, enrolment under both PMJJBY and PMSBY has continued to grow, the ministry said.
GST exemption to make insurance cheaper
The Finance Ministry also pointed to the GST exemption on life and health insurance policies as an important step towards making insurance more affordable.
It informed Parliament that GST has been exempted on all individual life insurance policies and health insurance policies, including family floater policies, along with their reinsurance, from September 22, 2025.
According to the government, this measure is expected to improve affordability and encourage more people to purchase insurance.
Insurance law amended to expand coverage
The government said another major step was the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025.
The law introduced several reforms to strengthen the insurance sector.
Among the key changes, the government said the FDI limit in the insurance sector has been increased to 100% to attract long-term capital and global underwriting expertise.
The amended law also provides for the creation of a dedicated Policyholders’ Education and Protection Fund, which will focus on spreading awareness about insurance and protecting policyholders’ interests.
Bima Sakhi scheme to improve insurance access among women
Responding to a question on increasing insurance coverage among women, the government said it has launched the Bima Sakhi – Mahila Career Agents (MCA) Scheme through LIC.
The scheme was launched on December 9, 2024, with the objective of creating employment opportunities for women while also promoting financial literacy and insurance awareness, particularly in rural areas.
According to the Finance Ministry, as on June 30, 2026, there were 2,86,909 Bima Sakhis across the country.
These women are now working in more than 50% of Gram Panchayats, helping spread awareness about insurance and encouraging more rural families, especially women, to take insurance cover.
IRDAI regulations also focus on rural insurance
The government also said that the Insurance Regulatory and Development Authority of India (IRDAI) has strengthened its regulatory framework to improve insurance penetration.
Under the IRDAI (Rural, Social Sector and Motor Third Party Obligations) Regulations, 2024, all insurers are required to work towards achieving insurance saturation in rural areas and among economically weaker sections.
The government said these measures, along with affordable insurance products and awareness initiatives, are intended to gradually expand insurance coverage across the country and support the goal of providing insurance protection to every Indian by 2047.
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