HDFC ERGO in Partnership with PhonePe, to Offer an Affordable Health Insurance Solution to India’s ‘Missing Middle’

In a pivotal move to expand health insurance coverage across India, HDFC ERGO General Insurance Company, a leading private sector general insurer, has forged a strategic partnership with PhonePe, to launch an affordable health insurance solution designed to serve the ‘Missing Middle’. 

The year 2025 marks the 79th glorious year of Indian Independence. One of the major drivers in shaping up the country’s economy is the digital payment ecosystem. However, while India is making remarkable strides at these fronts, an alarming fact remains that 30% of Indians, which involves ~40 crore citizens1, are still neither covered under government-sponsored health schemes nor can afford any comprehensive health insurance plan. In fact, ~10 crore1 individuals within this group also slips into poverty due to health care related expenses. These uninsured citizens largely belong to lower and middle-income groups or workers in the unorganised, including gig economy workers, who remain exposed to costly out-of-pocket healthcare expenses. 

HDFC ERGO’s partnership with PhonePe is a strategic move, as it brings together a trustworthy digital first insurer and a digital payment platform. By tapping into the digital infrastructure of PhonePe, the ‘missing middle’ of India now will have easy access to HDFC ERGO’s comprehensive health insurance at an affordable premium. 

Commenting on the launch, Parthanil Ghosh, Executive Director*, HDFC ERGO General Insurance, said, “As per the Niti Aayog report, ~40 crore Indians who are referred to as ‘Missing Middle’, lack any form of health insurance coverage. In order to bridge this gap, HDFC ERGO’s Suraksha Sankalp aims to provide financial support through its cashless Health Insurance plan ranging from OPD to hospitalisation. In order to reach the citizens across the country, we needed a strong partner with a wide distribution network across remote geographies. We are delighted to partner with PhonePe, who has helped to fulfil this purpose of insurance inclusion.” 

Adding to this, Vishal Gupta, CEO at PhonePe Insurance Broking Services, said, “Inclusive health insurance is a fundamental need and at PhonePe, we are committed to making a real impact towards the financial future and wellbeing of every Indian. As a step towards this initiative, we are proud to partner with HDFC ERGO to launch this plan for ‘Missing Middle’. The plan is priced to ensure affordability, while delivering meaningful coverage for individuals from the unorganised sector who can now have access to a health insurance plan.

Through this plan, we aim to provide access to quality healthcare for millions of underserved customers without the burden of high premiums. Our aim is to drive insurance adoption in the country by empowering users across various socio-economic strata with affordable, digital-first solutions that cater to their unique needs.”

HDFC ERGO’s Health Insurance Plan for Missing Middle is a comprehensive health insurance plan at an affordable premium, which comes with a 360 degrees medical coverage. This plan not only provides coverage against cashless hospitalisation across a wide network of hospitals, but also offers financial protection against medical emergencies like out-patient hospital consultations, out of pocket expenses during hospitalisation including cover for listed consumables, Personal Accident cover, vector borne diseases, among others. 

Currently PhonePe is offering this plan in Hyderabad, Nagpur and Madurai, and will soon roll-out across other cities.

Key Features of the health insurance plan

• In patient hospitalisation coverage of Rs. 3 lakhs
• Payout of Rs 2000/ day for 15 days for hospitalisation and Rs 1500/ day for 10 days extra in case of vector born disease
• Customers have an option of covering consumables such as surgical items, administration charges, etc. 
• Unlimited General Physician Tele-consultation & in-person consultation up to Rs 2,000
• Primarily catering to individuals aged 18-30 years, many of whom are first-time insurance buyers
• Easy policy purchase & issuance entirely through the PhonePe app
• Dedicated ‘Missing Middle Hospital Network’ for cashless treatments
• Affordable premiums starting at Rs. 12/ day for Rs. 3 lakhs coverage and other benefits