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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 insurance protection,[1] an rising burden of continual ailments,[2] and excessive out of pocket (OOP) expenditure on healthcare. Medical health insurance must 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 entice.[3]Additional, well being expenditure, each the catastrophic and recurring sorts, can have a big impact on a family’s skill to maintain or enhance its way of life. Low-income households are particularly weak to well being shocks and opposed well being diagnoses as a result of not solely delayed well being searching for behaviour, but additionally the unstable nature of their incomes coupled with a scarcity of security nets, makes ill-health costlier for them to deal with. Nonetheless, entry to medical insurance amongst Indian households (and never solely amongst low-income Indian households) has been traditionally low. Though medical 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 insurance account, protection is commonly inadequate.[4]  

On this research, we conduct a quantitative evaluation of family finance information to know the standing of medical insurance possession in India, determine the determinants of medical insurance possession, and perceive the connection between households’ entry to medical 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 Earnings 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 gives a comparability between a traditional 12 months (2019) and an anomaly (2020 with the Covid-19 pandemic). 

The complete report is accessible 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 ailments in India: want for strengthening major care.” Journal of Household Medication and Major 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 implies that even after having medical insurance, loads of households find yourself paying an enormous sum of cash from their very own pockets both because of the 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 a number of the unpublished (discipline) work of Dvara Analysis. This text by Deccan Herald additionally factors in the direction of inadequate protection: Deccan Herald. 2022. The Perils of India’s Lack of Medical Insurance coverage. April.

[5] For the reason that evaluation is finished on weighted households, the overall variety of pattern households in 2019 for which information was out there had 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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