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

Banking & Finance

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.


      - 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.

     

Main Point :-   (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.

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