Key figures of public health insurance
The gross direct premium income of the Indian health insurance industry was about 470 billion Indian rupees in financial year 2020. Public health insurance recorded the highest premium income of over 225 billion Indian rupees that year with the highest share of premiums written in the western state of Maharashtra.
The healthcare system
India has a decentralized approach to health care and that allows health insurance to be optional. Technically, all citizens are eligible for free healthcare at government facilities and individual states are responsible for organizing these services. However, the country’s health system is severely underfunded in terms of staff as well as supply shortages. A vast number of people seek care from private providers. Over 64 percent of the total healthcare expenditure in the country was from out-of-pocket expenses in fiscal year 2016.