Top Government Health Insurance Companies & Schemes in India

Health Insurance has now become essential for Indians with escalating cost and inflation in the field of health care. Although at present there is dominance of private insurance organizations in the market, government insurance organizations still remain an important part of offering affordable health insurance plans.

People looking for a government health insurance organization often get confused with government-funded health insurance schemes and government insurance organizations. Whereas programs like Ayushman Bharat offer health coverages under certain conditions, government insurance organizations offer health insurance products for individuals, family members, seniors, and even businesses.

The best health insurance plans for family in India include:

• The New India Assurance Company Limited
• National Insurance Company Limited
• The Oriental Insurance Company Limited
• United India Insurance Company Limited

All four of the above insurance companies are Public Sector Undertakings (PSUs) within the ambit of the Department of Financial Services, Ministry of Finance, Government of India. Collectively, they comprise an important constituent of India’s public health insurance network.

What Are Government Health Insurance Companies in India?

Government health insurance companies are insurance providers owned or controlled by the Government of India. Unlike government welfare schemes, these companies offer insurance policies that customers can voluntarily purchase by paying a premium.

These PSU insurers operate under the supervision of the Insurance Regulatory and Development Authority of India (IRDAI) and provide health insurance plans for:

• Individuals
• Families
• Senior citizens
• Corporate employees
• Small businesses

One of the biggest advantages of PSU insurers is their long-standing reputation, extensive branch networks, and decades of experience in claim management.

The 4 Public Sector General Insurance Companies in India

1. The New India Assurance Company Limited

Founded in 1919, New India Assurance is the largest public sector general insurance company in India. Headquartered in Mumbai, the company offers a wide range of insurance products. These include health, motor, travel, marine, and corporate insurance.

The insurer is particularly well known for its Mediclaim products, which have been trusted by Indian families for decades. It also has one of the largest branch networks among PSU insurers.

New India Assurance is one of the favored companies by people looking to buy an old company that covers the whole country.

2. National Insurance Company Limited

National Insurance Company Limited is an Indian insurance company that came into existence in 1906. With its headquarters in Kolkata, the firm has widespread coverage in India.

The company provides various types of health insurance policies which are suited for people, families, and senior citizens.

National Insurance remains a preferred choice for customers looking for a traditional insurer with widespread accessibility.

3. The Oriental Insurance Company Limited

The Oriental Insurance Company Limited was established in 1947 and operates from New Delhi. Through time, Oriental Insurance has established itself as an insurance organization that offers various health insurance options to individuals, families, and corporate bodies.

It should be noted that the Oriental Insurance Company Limited offers extensive family floater plans and group health insurance options.

The knowledge that it has about managing insurance programs in groups has made it a respected brand among companies and organizations.

4. United India Insurance Company Limited

Founded in 1938 and based in Chennai, United India Insurance has a strong presence in South India and operates in the entire country. The insurer offers multiple health insurance solutions for individuals, families, and senior citizens. It is particularly recognized for its customer base in southern states.

United India Insurance continues to serve millions of customers through its extensive branch and partner network. For those looking to tap into the insurance industry, learning how to join PBPartners as an insurance agent provides a straightforward path to selling top-tier public and private sector policies.

PSU Health Insurance Companies Comparison Table

The following comparison provides a quick overview of the leading government health insurance companies in India.

Though every insurance company provides different health insurance plans, the choice between them is based on parameters like geography, individual health requirements, budget constraints, and choice of hospitals.

Top Health Insurance Plans from PSU Companies (2026)

1. 1. New India Mediclaim Policy

The New India Mediclaim Plan continues to enjoy popularity among PSU health insurance plans in the country. This plan includes coverage for hospitalization and can be taken out by individuals and families.

Suitable for: Families seeking a traditional health insurance plan from an established insurer.

2. National Mediclaim Policy

National Insurance offers Mediclaim plans designed to provide financial protection against hospitalization expenses.

Suitable for: Customers looking for broad accessibility, particularly in Tier-2 and Tier-3 cities.

3. Oriental Happy Family Floater

This plan provides coverage for multiple family members under a single sum insured, making it a practical choice for families.

Suitable for: Families looking for comprehensive family floater coverage.

4. UNI Family Medicare Policy

United India's family-focused health insurance plan is designed to help families manage hospitalization expenses under a single policy.

Suitable for: Households seeking family-based coverage with a PSU insurer.

Best Government Insurance Company for Health: Which One Should You Choose?

Choosing the best government health insurance company depends on your specific needs.

PSU Health Insurance vs Private Health Insurance

Many buyers wonder whether they should choose a PSU insurer or a private health insurance company.

GIPSA and the PPN Network

All four PSU general insurance companies are members of the General Insurance Public Sector Association (GIPSA). 

One of the major benefits of this arrangement is the Preferred Provider Network (PPN), a network of empanelled hospitals that offer standardized treatment packages and cashless hospitalization facilities based on a fixed PPN rate in health insurance.

For policyholders, this system helps reduce unexpected out-of-pocket expenses and ensures a smoother, more predictable cashless treatment experience.

How to Buy a PSU Health Insurance Policy

Purchasing a health insurance policy from a public sector insurer is relatively straightforward. Most PSU insurers offer both online and offline purchasing options. 

Step 1: Compare Available Plans

The first thing to do is compare the policies offered by New India Assurance, National Insurance, Oriental Insurance, and United India Insurance.

Evaluate:

• Sum insured options and premium costs
• Waiting periods and coverage for pre-existing diseases
• Room rent limits and network hospitals
• Market benchmarks using a curated list of the best health insurance plans for family to see how public insurers stack up against private alternatives

Step 2: Calculate the Right Sum Insured

The inflation rate for medical expenditures is increasing each year. It is advisable to have at least a health insurance cover of ₹10 lakh for urban families.

Step 3: Complete the Proposal Form

Provide accurate information regarding:

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• Age
• Medical history
• Existing illnesses
• Lifestyle habits

Incorrect disclosures may lead to claim complications later.

Step 4: Pay the Premium

Premiums can be paid:

• Online through insurer websites
• Through insurance advisors
• At branch offices
• Via authorized brokers

Step 5: Receive Policy Documents

After verification and payment, the insurer issues:

• Policy document
• Health card
• Policy schedule
• Terms and conditions

Step 6: Check Network Hospitals

Before a medical emergency arises, review the insurer's network hospital list and understand the cashless claim process.

Still confused? Figure out whether it is better to buy your policy online or through an agent depending on the level of claim support you prefer.

Claim Process for PSU Health Insurance

PSU health insurers generally support both cashless and reimbursement claims.

Cashless Claim Process

Cashless claims are available at network hospitals, including many hospitals within the GIPSA PPN network.

Step 1: Inform the Hospital

At admission, provide:

• Health insurance card
• Policy number
• Identity proof

Step 2: Submit Pre-Authorization

The hospital sends treatment details to the insurer or TPA for approval.

Step 3: Approval and Treatment

After approval, treatment proceeds without requiring the policyholder to pay covered expenses upfront.

Step 4: Settlement

The insurer directly settles approved expenses with the hospital.

Reimbursement Claim Process

If treatment occurs at a non-network hospital:

Step 1: Pay Hospital Bills

The policyholder initially pays the expenses.

Step 2: Submit Documents

Required documents usually include:

• Claim form
• Discharge summary
• Prescriptions
• Diagnostic reports
• Original bills

Step 3: Claim Review

The insurer reviews the submitted documents.

Step 4: Reimbursement

Approved claim amounts are transferred to the policyholder's bank account.

The time required to process claims will differ according to their complexity and the type of documents available.

Government Health Insurance Schemes in India

Although PSU health insurance firms provide health insurance plans, the Indian government has some health schemes of its own.

Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

Launched in 2018, Ayushman Bharat PM-JAY is one of the world's largest government-funded healthcare programs.

The scheme provides health coverage of up to ₹5 lakh per family per year for eligible beneficiaries and supports cashless treatment at empanelled hospitals. It targets economically vulnerable families across India. 

Key Features

• ₹5 lakh annual family coverage
• Cashless hospitalization
• No restrictions on family size
• Coverage for pre-existing diseases from day one
• Nationwide portability

Employees' State Insurance Scheme (ESIS)

ESIS is administered by the Employees' State Insurance Corporation under the Ministry of Labour and Employment.

The scheme provides medical benefits, sickness benefits, maternity benefits, and disability coverage for eligible workers and their families. 

Eligibility

• Employees earning up to the prescribed wage ceiling
• Employees working in covered establishments

Central Government Health Scheme (CGHS)

CGHS provides healthcare services to:

• Central government employees
• Pensioners
• Members of Parliament
• Eligible government beneficiaries

State Government Health Insurance Schemes

Many states operate their own healthcare programs.

Popular examples include:

Each scheme has its own eligibility requirements, coverage limits, and treatment benefits. Learn more about how to claim PMJJBY and PMSBY.

Common Misconceptions About Government Health Insurance

Government health insurance is often misunderstood. Here are some common myths.

Myth 1: Government Health Insurance Is Only for BPL Families

False.

Health insurance companies that operate under the government offer services to individuals, families, old people, and business organizations irrespective of financial background.

Myth 2: PSU Health Insurance Does Not Offer Cashless Treatment

False.

Most PSU insurers provide cashless treatment through their network hospitals and the GIPSA PPN network.

Myth 3: Government Health Insurance Is Only for Emergencies

False.

Coverage usually covers hospitalization, operations, daycare treatments, and emergencies.

Myth 4: PSU Health Insurance Claims Always Take Months

False.

Claim timelines vary based on documentation and claim complexity. Many straightforward claims are settled efficiently.

Myth 5: Government Health Schemes and PSU Insurance Are the Same

False.

Government schemes are welfare programs, while PSU insurers offer premium-based insurance products.

Health insurance companies owned by the government still form an important part of the health system in India. The New India Assurance, National Insurance, Oriental Insurance, and United India Insurance Companies provide a variety of health insurance policies for individuals, families, senior citizens, and companies.

When buying a health insurance policy, it is recommended that you carefully evaluate different aspects including the coverages, waiting periods, hospitals, claims process, and premiums. With a good insurance plan, you can take care of increasing expenses on healthcare.