Union Finance Minister Nirmala Sitharaman on Tuesday said the Central Government plans to expand insurance coverage to 25,000 gram panchayats as part of a targeted effort to increase insurance penetration in rural areas.
Addressing the Lok Sabha, Sitharaman said gram panchayats would now serve as the focal unit of measurement for rural obligations and coverage.
“In December 2025, we brought in a Bill whereby we increased the FDI limit to 100 per cent, primarily to enhance penetration and deepen the insurance market,” she told the House. She said, “In that connection, I would like to inform that 25,000 gram panchayats will be covered this time, with the gram panchayat as the focal centre, looking at insurance coverage in and around that area.”
