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HDFC ERGO General Partners with PhonePe to Launch Affordable Health Insurance for the ‘Missing Middle’.

Banking & Finance | Dated: 16 Aug 2025

On August 13, 2025, HDFC ERGO General Insurance Company Limited (a Joint Venture between Housing Development Finance Corporation Limited – HDFC Ltd and ERGO International AG) entered into a strategic partnership with PhonePe to roll out a low-cost health insurance plan aimed at expanding coverage for underserved citizens in India.

🎯 Key Highlights:

  • - The collaboration targets India’s ‘Missing Middle’ segment—around 40 crore citizens aged between 18 and 30 years—who fall outside the scope of both government health schemes and existing private insurance plans.
  • - This initiative seeks to make healthcare protection more accessible and affordable to young adults in lower and middle-income categories.

💡 Other Important Facts:

  • (i) Under the plan, premiums start at just ₹12 per day (₹4,380 annually) for a coverage sum insured of ₹3 lakh, ensuring that even first-time buyers from economically modest backgrounds can access quality healthcare coverage without significant financial strain.
  • (ii) The health insurance can be seamlessly purchased, renewed, and managed directly via the PhonePe mobile application, allowing users to conveniently handle policy documentation, claims, and benefits from their smartphones.
  • (iii) Policy benefits include cashless hospitalization at a wide network of hospitals, outpatient department (OPD) consultations, coverage for specified consumables, personal accident insurance, and protection against vector-borne diseases, strengthening both preventive and curative healthcare access for the targeted demographic.

📚 Test Your Knowledge:

Recently, HDFC ERGO General Insurance Company Limited partnered with which digital payments platform to launch affordable health insurance for the ‘Missing Middle’?

Correct Answer: PhonePe

🚀 Quick Recap: