State-wise Health Insurance Coverage in India: A 2025 Update

Health insurance enables families to access medical care without incurring excessive costs.

By 2025, health insurance coverage in India is projected to reach 55% of households, indicating that over half of Indian families have at least one member enrolled in either a public or private insurance plan.

This marks a significant increase from 41% in 2021, largely due to initiatives like Ayushman Bharat.

This table illustrates the variations in health insurance coverage across India’s 28 states and 8 union territories, highlighting regions that excel and those that lag behind.

State-wise Health Insurance Coverage in India

Rank	State/Union Territory	Health Insurance Coverage (% of Households)
1	Rajasthan	88
2	Andhra Pradesh	80
3	Telangana	75*
4	Tamil Nadu	70*
5	Kerala	65*
6	Karnataka	60*
7	Puducherry	60*
8	Goa	58*
9	India (National Average)	55
10	Chhattisgarh	55*
11	Gujarat	55*
12	Maharashtra	55*
13	Delhi	50*
14	Haryana	50*
15	Punjab	50*
16	West Bengal	50*
17	Himachal Pradesh	45*
18	Odisha	45*
19	Tripura	45*
20	Sikkim	43*
21	Uttarakhand	43*
22	Assam	40*
23	Jharkhand	40*
24	Madhya Pradesh	40*
25	Uttar Pradesh	40*
26	Arunachal Pradesh	35*
27	Bihar	35*
28	Chandigarh	35*
29	Manipur	35*
30	Meghalaya	35*
31	Mizoram	35*
32	Nagaland	35*
33	DNHDD (Dadra and Nagar Haveli and Daman and Diu)	30*
34	Ladakh	30*
35	Jammu and Kashmir	15*
36	Andaman and Nicobar Islands	13*
37	Lakshadweep	10*

The table organizes states and union territories based on the percentage of households possessing health insurance.

Rajasthan tops the list with 88%, followed by Andhra Pradesh at 80%, Telangana at 75%, Tamil Nadu at 70%, and Kerala at 65%.

The national average stands at 55%, while the Andaman and Nicobar Islands (13%) and Lakshadweep (10%) are at the bottom, with Jammu and Kashmir (15%) slightly above them.

Rajasthan’s leading position is attributed to its vigorous implementation of Ayushman Bharat, which provides free hospital care up to ₹5 lakh per year to 88% of households.

Andhra Pradesh closely follows, benefiting from its Aarogyasri scheme that raises coverage to 80%.

Telangana, Tamil Nadu, and Kerala enjoy the advantages of robust state health initiatives and heightened awareness, resulting in 65–75% of families having insurance.

What accounts for the lag in certain regions?

The small populations and isolated locations of Lakshadweep and the Andaman and Nicobar Islands hinder the dissemination of information and the provision of insurance services.

The low coverage of 15% in Jammu and Kashmir is indicative of security issues and restricted access to enrollment efforts.

Why so much disparity in Insurance Coverage

Several elements account for the inconsistent distribution of health insurance coverage across India:

Government Initiatives: Rajasthan boasts an impressive 88% coverage, largely due to the expansion of Ayushman Bharat, which aims to assist 15 crore families across the country.

In Andhra Pradesh, the Aarogyasri program supplements state funding, achieving coverage for 80% of households.

Conversely, remote regions such as Lakshadweep (10%) are left behind as outreach efforts struggle to connect with these isolated islands.

Awareness Levels: A mere 42% of Indians have a comprehensive understanding of the benefits of insurance (PolicyX, 2024).

In southern states like Tamil Nadu (70%), where literacy rates exceed 80%, enrollment is higher.

In contrast, Bihar (35%) suffers from lower literacy rates (67%), resulting in fewer families being aware of or trusting insurance.

Economic Factors: More affluent states like Karnataka (60%) see a greater number of private insurance purchasers, as families are able to afford the premiums.

On the other hand, poorer states like Jharkhand (40%) depend on free public schemes, but face challenges in enrollment due to bureaucratic obstacles.

Urban vs. Rural Disparity: Urban centers such as Delhi (50%) experience higher coverage rates (62% in urban areas compared to 41% in rural areas) because insurance companies focus their efforts on cities.

Rural regions like Assam (40%) encounter delays in the implementation of schemes, resulting in coverage gaps.

Infrastructure Availability: States with a higher number of hospitals, such as Kerala (981 government, 2,110 private), enhance the utility of insurance, leading to a 65% uptake.

In contrast, the Andaman and Nicobar Islands (13%), which have only 15 government and 25 private hospitals, face limited healthcare options, diminishing the perceived need for coverage.

Progress and Challenges

India’s coverage has improved to 55% in 2025, up from 41% in 2021 (NFHS-5).

The Ayushman Bharat scheme now supports 107 million families, providing ₹5 lakh annually for hospital expenses.

The private insurance sector is also expanding, with premiums increasing by 13% each year (Insurance Asia, 2025).

States such as Rajasthan demonstrate how government initiatives can significantly enhance coverage.

However, challenges remain. Only 29% of outpatient services are included, compelling families in low-coverage regions like Uttar Pradesh (40%) to incur out-of-pocket expenses for clinic visits.

Remote locations like Ladakh (30%) face difficulties in enrollment due to poor internet connectivity and a lack of officials.

Source

• Ministry of Health and Family Welfare, Government of India. (2021). National Family Health Survey (NFHS-5) 2019-21: India report. International Institute for Population Sciences (IIPS)