Sunday, March 26, 2023

Dvara Analysis Weblog | Well being Insurance coverage Possession in India


Niyati Agrawal
Priyadarshini Ganesan


India’s well being sector is characterised by fragmented health insurance coverage,[1] an growing burden of chronic diseases,[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 trap.[3]Additional, well being expenditure, each the catastrophic and recurring varieties, can have a huge effect on a family’s capability to maintain or enhance its way of life. Low-income households are particularly weak to well being shocks and adversarial well being diagnoses resulting from not solely delayed health seeking 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 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 usually inadequate.[4]  

On this examine, we conduct a quantitative evaluation of family finance information to know the standing of medical insurance possession in India, establish 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 Economic system’s (CMIE’s) Client 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 yr (2019) and an anomaly (2020 with the Covid-19 pandemic). 

The total report is offered 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 Medication and Main Care 6, no. 4 (2017): 701.

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

[4] Inadequate protection right here implies that even after having medical 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 resulting from medical bills exceeding the duvet offered by the insurance coverage scheme. This has been seen in a number of the unpublished (subject) work of Dvara Analysis. This article 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] For the reason that evaluation is finished on weighted households, the overall variety of pattern households in 2019 for which information was obtainable 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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