New Delhi, March 17 -- The central government is set to extend insurance coverage to 25,000 gram panchayats as part of a targeted push to deepen insurance market penetration in rural areas. Finance Minister Nirmala Sitharaman, while speaking in the Lok Sabha, emphasized that the gram panchayat will now serve as the focal unit of measurement for rural obligations and coverage.

"In December 2025, we brought in a Bill whereby we had increased the FDI coverage to 100 per cent, primarily aiming to bring greater penetration and deepen the insurance market," Sitharaman told the House.

"In that connection, I would like to inform through you, sir, that 25,000 gram panchayats will be covered this time, with gram panchayat being at the focal centr...