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HomeMicrofinanceDvara Analysis Weblog | Well being Insurance coverage Possession in India

Dvara Analysis Weblog | Well being Insurance coverage Possession in India


Niyati Agrawal
Priyadarshini Ganesan


India’s well being sector is characterised by fragmented medical health insurance protection,[1] an growing burden of continual illnesses,[2] and excessive out of pocket (OOP) expenditure on healthcare. Medical insurance needs to be an integral a part of a family’s portfolio because it helps the family higher handle its well being bills and avert well being related-financial shocks. Well being shocks are among the many most typical causes for households falling right into a poverty lure.[3]Additional, well being expenditure, each the catastrophic and recurring sorts, can have a huge effect on a family’s capacity to maintain or enhance its way of life. Low-income households are particularly susceptible to well being shocks and hostile well being diagnoses as a result of not solely delayed well being looking for behaviour, but additionally the risky nature of their incomes coupled with an absence of security nets, makes ill-health costlier for them to deal with. Nonetheless, entry to medical health insurance amongst Indian households (and never solely amongst low-income Indian households) has been traditionally low. Though medical health insurance possession has elevated significantly within the final seven years from 29% in 2015-16 to 41% in 2020-21 (NFHS), the general uptake stays inadequate. Amongst those that do maintain a medical health insurance account, protection is usually inadequate.[4]  

On this examine, we conduct a quantitative evaluation of family finance information to know the standing of medical health insurance possession in India, determine the determinants of medical health insurance possession, and perceive the connection between households’ entry to medical health insurance and their well being expenditure. We use information from Centre for Monitoring Indian Financial system’s (CMIE’s) Shopper Pyramids Family Survey (CPHS), Aspirational India Survey, and Family Revenue Survey from 2014 to 2020, to reply these questions. The dataset from 2014 to 2020 has a pattern of 1,47,868 households from throughout the nation representing each rural and concrete geographies.[5] The evaluation is essentially primarily based on information from the years 2019 and 2020 which affords a comparability between a standard 12 months (2019) and an anomaly (2020 with the Covid-19 pandemic). 

The complete report is out there right here.

[1] Ministry of Well being & Household Welfare, Authorities of India. 2021. Nationwide Household Well being Survey (NFHS-5)2019-21.

[2] Sinha, Rajeshwari, and Sanghamitra Pati. “Addressing the escalating burden of continual illnesses in India: want for strengthening major care.” Journal of Household Drugs and Main Care 6, no. 4 (2017): 701.

[3] Krishna, Anirudh. “Poverty and well being: defeating poverty by going to the roots.” Improvement 50, no. 2 (2007): 63-69.

[4] Inadequate protection right here signifies that even after having medical health insurance, plenty of households find yourself paying an enormous sum of cash from their very own pockets both as a result of nature of the insurance coverage merchandise purchased by the households or as a result of medical bills exceeding the quilt offered by the insurance coverage scheme. This has been seen in among the unpublished (discipline) work of Dvara Analysis. This text by Deccan Herald additionally factors in direction of inadequate protection: Deccan Herald. 2022. The Perils of India’s Lack of Medical Insurance coverage. April.

[5] Because the evaluation is completed on weighted households, the whole variety of pattern households in 2019 for which information was out there have been 133,538, which correspond to twenty-eight,32,23,799.

Cite this report:


Agrawal, N., & Ganesan, P. (2022). Well being Insurance coverage Possession in India. Retrieved from Dvara Analysis.


Agrawal, Niyati and Priyadarshini Ganesan. “Well being Insurance coverage Possession in India.” 2022. Dvara Analysis.


Agrawal, Niyati, and Priyadarshini Ganesan. 2022. “Well being Insurance coverage Possession in India.” Dvara Analysis.



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