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Government Health Insurance Schemes in India

Government Health Insurance Schemes in India

With the price of health care constantly rising in India, it is getting difficult to afford quality health care, especially in the urban side of the country. With the modern lifestyles, we need health insurance plans in India. Otherwise, a medical emergency it would be an additional unplanned expense that can wash off your savings in a single go.

In big cities, people have an access to better healthcare facilities. Additionally, private hospitals are taking over the medical infrastructure. It makes quite difficult for a layman to afford quality healthcare. This is where health insurance plans in India acts as a blessing in disguise. Health insurance is not a luxury, rather it is a basic necessity.  If you haven’t purchase health insurance yet, you ought to buy it. Before zeroing in on a plan,  you must compare health plans and decide which one is the best for you depending on various different features.
In this article, we will tell you about the various government health insurance plans in India.

1. ESIS (Employment State Insurance Scheme)

When it comes to the Employees State Insurance Scheme (ESIS), it is definitely one of the most beneficial state insurance schemes in the market. It is formulated with the purpose of providing a security net for and catering to the needs of the working class in the nation. This scheme has also proven to be quite beneficial for the dependent family as it covers the need of the working sole member and the immediate family that relies on his/her sole income. It also goes a step ahead and provides them with socio-economic facilities when they are in need.

Key Benefits

This particular scheme has too many benefits for the insured. The dependents as well as the policyholder are entitled to avail medical care with no restriction to the expenses. Under this scheme, even the retired individuals enjoy insurance coverage by paying a nominal premium of about Rs 120 per year. The plan covers permanently disabled people as well.

When compare health plans and ESIS turns out to be one of the best health insurance plans in India by the government.

2. CGHS (Central Government Health Scheme)

The Central Government Health Scheme is mainly implemented for employees to get comprehensive medical care along with the pensioners of the establishments by the central government. It covers the dependents of the employees of the central government. This scheme is not available in every city hence it comes second in our list of best health insurance plans in India by the government.


The reason why it is one of the best health insurance plans in India is due to the sheer number of benefits that it offers for the policyholder. Features such as dispensary services, specialist consultation, health education, domiciliary care and even hospitalization are provided by this scheme.

3. RSBY(Rashtriya Swasthiya Bima Yojana)

Popularly known as RSBY, this particular scheme is formulated for people who are living below the poverty line in our country. These families are known as BPL families. When one goes to compare health plans for BPL families, then this plan is definitely an extensively beneficial one.  It not only provides the eligible families with any financial difficulties to pay for healthcare but also covers the financial liabilities that come with major healthcare expenses.


The RSBY beneficiaries receive a lot of benefits under this scheme. They can avail coverage of up to 30,000/- for in-patient coverage that requires hospitalization. The scheme is available only at empanelled hospitals at fix pre-defined rates. In some cases, pre-existing illness of the insured is also taken care of since the policy inception. Additionally, there is no constraint apart from the restriction of only five members.

4. AABY (Aam Aadmi Bima Yojana)

When it comes to the health insurance plans in India provided by the government, this scheme is probably the most important. It is formulated mainly for the rural population of the country. If you compare health plans for the rural areas, this scheme probably offers the maximum benefits. It basically provides for people who do not have any land in their name and also provides coverage in the form of social cover for the rest of the family.

Under the AABY scheme, the main member of the family is provided with coverage. The new revised AABY scheme is a product of a merger between two popular social schemes- namely the Aam Admi Bima Yojna and the Janaeshree Bima Yojna provides the maximum benefit.


Again, if we consider the kind of benefits that this plan offer for the value invested in it, the returns are quite a lot. The eligible family is provided with a death benefit in case the policyholder passes away (natural death). The family is provided 30,000. When it comes to permanent disability which is a result of an accident, the policyholder is provided with a compensation of 75,000. In case of partial disability which is permanent and occurs due to an accident, the government compensates for an amount of up to 37,500/-. The family is also provided with a free scholarship for two children between 9th grade to 12th grade where they are provided 100 rupees each month.

The Bottom Line

There are various benefits of opting for these key health insurance (government) schemes in India. However, the lack of awareness amongst the poor makes it lesser accessible for that section of the society to take full advantage of it. As a result, they sometimes miss out on using this aid provided by the government for their betterment.

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