How far the coverage of health insurance available to Indians, both in rural and urban areas? Who can
afford to pay for health insurance coverage? This study examines health insurance scenario of India by
analyzing the trends and patterns and household characteristics of health insurance policy holders. The
study utilized available data from the latest rounds of two nationally representative surveys DLHS (2007-08)
and NFHS (2005-06). Only 5 percent of the households in India were covered under any kind of health
insurance. Within the insurance schemes, the state owned health schemes are the most subscribed (39.2),
followed by the Employee State Insurance Scheme (17 percent). Among the households belonging to the
lowest economic categories, less than 3 percent were covered by any health scheme or health insurance.
However, the recent trends show that the community health insurance targeting poor households are
becoming much popular and it may be the most appropriate way of supporting the families vulnerable to
catastrophic health spending.