Bajaj Allianz Launches State-Specific Health Insurance Plans

In a first-of-its-kind initiative, Bajaj Allianz General Insurance has launched State-wise customised health insurance policies designed to reflect the unique healthcare dynamics of different Indian states. This approach moves beyond the uniform pricing model and aims to make health insurance more affordable and accessible, especially for the urban lower middle class and rural middle class segments.

Why in News?

The launch of State-specific health insurance policies by Bajaj Allianz on June 20, 2025, marks a significant innovation in India’s health insurance sector. With large disparities in healthcare infrastructure, treatment costs, and disease patterns across states, the insurer’s move addresses the demand for affordable, need-based coverage—especially for the ‘missing middle’ who remain uninsured due to high premium costs.

Key Features of the State-wise Health Insurance

• Customised Premiums: Based on local hospital infrastructure, treatment costs, and regional health patterns
• Affordability Focus: Premiums differ by 10–15% across states

Target Audience

• Urban lower middle class
• Rural middle class
• ‘Missing middle’ — not covered under Ayushman Bharat or private insurance
• Variants Available: Individual and floater plans

Objectives and Vision

• Bridging Coverage Gap: Focus on the segment that most needs health insurance but remains uncovered due to cost barriers
• Insurance for All: Aligned with the broader goal of universal health coverage
• Localized Relevance: From disease prevalence to healthcare affordability, insurance is tailored to actual state-wise needs

Background and Industry Impact

• Traditionally, health insurance in India followed a ‘zone-based premium’ model (Metro, Tier I/II/III cities).
• Bajaj Allianz’s state-based pricing takes a more granular, data-driven approach.
• The move could set a new benchmark in micro-insurance and inclusive health finance.