MeraNews Network, Mumbai: International rating agency Moody’s has said that Ayushman Bharat, the flagship health insurance scheme recently announced by the Prime minister, is a positive initiative for insurance companies as it will aide in higher premium growth.

The scheme will cover over ten crore poor families and would provide a health insurance coverage of up to five lakh rupees per family per year for secondary and tertiary care hospitalization. According to the report released in Mumbai on Thursday, health insurance contributes around 23 percent of general insurance premiums and is one of the insurers’ main drivers of growth.

In his Independence Day speech in New Delhi, the prime minister Narendra Modi had announced that the Ayushman Bharat or the National Health Protection Mission (AB-NHPM), also known as Pradhan Mantri Arogya Abhiyan, will be launched on September 25.

During fiscal years 2011-12 to 2016-17, health premiums have grown at a compound annual growth rate of 18 percent. The rating agency has expected that insurers with scale advantages and track records of managing large insurance schemes will benefit from this ambitious initiative of the Central Government.

Follow us on Facebook and Twitter for news updates.