In 2008, the government launched a country-wide health insurance policy aimed purely at the BPL or the Below Poverty Line sector. This health insurance scheme is called as the Rashtriya Swasthya Bima Yojana.

Under this scheme, the insured, their spouse, and three other dependents like children or parents are protected from health expenses for a total of Rs. 30,000/- per annum.

The most beneficial aspect of this scheme is that the applicant only must pay the registration fees of Rs. 30/- every year. The premium is shared by the central and the state government respectively.


  • Anyone who falls under the BPL sector is eligible for the Rashtriya Swasthya Bima Yojana.

  • Persons working in the unorganized sector like street vendors, beedi workers, domestic workers, sanitation workers, rickshaw puller etc. are eligible for the scheme.

  • There is no upper age limit. Hence persons of any age may apply for the RSBY scheme.

  • The maximum number of persons ensured in a family are five. This includes the applicant themselves, their spouse, and three other dependents. The dependents can be children or parents.

The aim of the Rashtriya Swasthya Bima Yojana

The objective of this scheme is two-fold:
  • To provide healthcare to persons and families falling below the poverty line

  • To make quality healthcare accessible to people in BPL sector as well as workers of unorganized sector

Features of the Rashtriya Swasthya Bima Yojana

Health Coverage

A health covers of up to Rs. 30,000/- is provided per year for up to 5 members of the family on a family floater basis. This also includes pre-existing conditions right from the first day itself.

Biometric Smart Card

A biometric Smart Card is provided to the insured person. This contains the applicants fingerprints as well as other details in its chip. The insured person only needs to provide this smart card at the time of the claim to the hospital.

RSBY is completely paperless and cashless

All the required documents are submitted to the insurer electronically, making the process completely paperless. Also, the claimant only has to produce the cashless smart card to the hospital. Thus the hassle of paying in cash and waiting for reimbursement later is completely avoided.

Choice of hospitals

A variety of hospitals both in the private as well as public sector is involved in the Rashtriya Swasthya Bima Yojana. The choice of hospital is also given to the insured person.

Thus, the Rashtriya Swasthya Bima Yojana is an excellent and highly beneficial health insurance scheme for the poor masses of India. With the help of this scheme, the people in the BPL sector can avail quality healthcare without worrying about the finances.

Learn more about different Health Insurance Plans here.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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