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5 Cost Effective Government Sponsored Health Insurance Schemes You Can Avail in India

19 May 2022, 10:08 AM

Due to the increasing cost of healthcare facilities across the country, the Government of India has taken several initiatives to make these facilities affordable for every section of society. 

The 5 cost-effective Government-Sponsored Health Insurance Schemes are listed below.

Rashtriya Swasthiya Bima Yojana (RSBY)

The Rashtriya Swasthiya Bima Yojana (RSBY) would help in providing health insurance coverage for those families which are BPL (Below Poverty Line) families. 

The major features of the RSBY Scheme are noted below.

  • This scheme would provide coverage for the expenses related to hospitalisation up to INR 30,000.
  • There is no upper limit on the age to purchase this health insurance scheme.
  • The families can avail of the benefit of coverage of the pre-existing conditions from the starting day of the health insurance plan.
  • The Rashtriya Swasthiya Bima Yojana would provide coverage for a maximum of 5 members in a family. These 5 members would include self, your spouse, and any other three dependent family members.
  • The family which would be covered under this policy would have to pay a registration fee of INR 30.
  • The premium for the health insurance of the family would be paid by the Central Government or the State Government.

Aam Aadmi Bima Yojana

The Aam Aadmi Bima Yojana (AABY) was launched on 2nd October 2007. It is a social security health scheme that would be useful for the landless households of rural India.

Let us check out the major features of the Aam Aadmi Bima Yojana.

  • In this scheme, the head of the rural family is covered. The premium for this scheme is INR 200 which is being paid by the Central Government and the State Government.
  • The minimum age limit for entry into this plan is 18 years and the maximum age limit is 59 years.
  • In case of natural death of the life insured, the scheme would make a payment of INR 30,000.
  • If there is an accidental death of the life insured or total permanent disability, an amount of INR 75,000 would be paid. This would cover the disability of 2 limbs or 2 eyes of the life insured.
  • However, if there are partial permanent disabilities due to an accident then compensation of INR 37,500 would be paid. This would cover disability to one limb and one eye of the person insured.

Employee State Insurance Scheme

Employee State Insurance Scheme (ESIS) would help in providing health insurance coverage for the workers who are working in non-seasonal factories. These factories should have a minimum of 10 employees as its employee strength. This scheme has also been applied for restaurants, cinemas, shops, newspaper establishments, etc. which can have an employee strength that is greater than 20 people. 

The major features and benefits of the Employee State Insurance Scheme can be listed as below.

  • This Government-sponsored health insurance scheme would provide cover for the person insured and for his dependents.
  • Coverage provided by this health insurance policy would include the costs of hospitalisation and other cash benefits if the insured person is sick or disabled.
  • If a worker dies in an accident while he was employed, then his dependents would receive a Dependent benefit. This Dependent benefit would be in the form of a regular pension.

Ayushman Bharat–National Health Protection Mission

The Ayushman Bharat-National Health Protection Mission is a National scheme for health protection that would provide coverage for almost 10 crore families which are 'Below Poverty Line'.

  • By this scheme, health insurance cover of up to INR 5 lakh is available for each BPL family in a year for their secondary and tertiary health care.
  • The premiums for this scheme would be taken care of by the Government.
  • This scheme provides the benefits of cashless transactions.
  • The benefits offered by the Ayushman Bharat-National Health Protection Mission can be ported throughout the country.
  • Cashless benefits can be availed from any of the network hospitals i.e. private or public throughout the country.
  • This scheme can provide an increased benefit cover for more than 40% of the country’s population.

Universal Health Insurance Scheme

This health insurance scheme was introduced by four public insurance providers to provide comprehensive health insurance cover to poor families. This scheme has also been designed for BPL families. 

  • The sum assured in this scheme is limited to INR 30,000 in the form of a family floater plan for covering the expenses of hospitalisation.
  • Moreover, an accidental health cover of INR 25,000 is offered and in case of a loss of income, compensation of INR 50 is also offered every day.
  • The premium for this health insurance scheme is INR 200 for covering individuals, INR 300 for providing cover to a family of five members, and INR 400 for a family that has seven members.


So, health insurance policies are a basic requirement these days and everyone must include them in their financial portfolio. The Government has started these health insurance schemes so that it becomes feasible for the weaker sections to accomplish the goal of basic health care. We should try and communicate about these Government-sponsored health insurance schemes among the needy as much as we can. 

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