Archive · 27 Jul 2026
Government Initiatives to Expand Insurance Coverage
The Indian government is working to make insurance more affordable and available to everyone.
They have introduced schemes like PMJJBY and PMSBY, which offer life and accident insurance at low costs.
The government has also removed GST on life and health insurance to make them cheaper.
They are running campaigns to spread awareness and increase enrolment, especially in rural areas.
Additionally, they have increased the foreign investment limit in the insurance sector and launched the Bima Sakhi scheme to help women become insurance agents and promote financial literacy.
All these steps aim to ensure that every Indian has insurance protection by 2047.
The government is taking steps to make insurance more affordable and expand coverage as part of its 'Insurance for All' vision by 2047.
Affordable schemes like PMJJBY and PMSBY offer life and accident insurance at low premiums of Rs 436 and Rs 20 respectively.
A nationwide Financial Inclusion Saturation Campaign was conducted from July to October 2025 to increase enrolment in insurance schemes.
GST has been exempted on life and health insurance policies to make them more affordable.
The Sabka Bima Sabki Raksha Act, 2025, introduced reforms like increasing the FDI limit to 100% and creating a Policyholders’ Education and Protection Fund.
- Who
- The Indian government, specifically the Ministry of Finance
- What
- Steps to make insurance more affordable and expand coverage
- When
- Various initiatives launched between 2015 and 2026
- Where
- Across India, with a focus on rural areas and underprivileged sections
- Why
- To achieve the goal of 'Insurance for All' by 2047
Pro-Insurance Expansion
Critics of Government Initiatives
Effectiveness of Affordable Schemes
Pro-Insurance Expansion
The government's affordable insurance schemes like PMJJBY and PMSBY have significantly increased insurance coverage among the poor and underprivileged.
Critics of Government Initiatives
Critics argue that the premiums are still too high for the most vulnerable populations, and more needs to be done to make insurance truly affordable.
Impact of GST Exemption
Pro-Insurance Expansion
The GST exemption on life and health insurance policies has made insurance more affordable and encouraged more people to purchase policies.
Critics of Government Initiatives
Some critics believe the GST exemption does not go far enough and that additional financial incentives are needed to make insurance accessible to all.
- PMJJBY Annual Premium
- Rs 436
- PMSBY Annual Premium
- Rs 20
- GST Exemption Date
- September 22, 2025
- Bima Sakhi Scheme Launch Date
- December 9, 2024
- Number of Bima Sakhis as of June 30, 2026
- 2,86,909
- Financial Inclusion Campaign Duration
- July 1, 2025 - October 31, 2025
- FDI Limit in Insurance Sector
- 100%