The Indian insurance industry is expected to grow to $280bn by the fiscal year ending March 2020 (FY2020), aided by the government's Ayushman Bharat health insurance scheme, industry chamber Assocham has said, citing a joint study conducted with research firm APAS.

Other growth drivers like rising disposable incomes, the presence of global players and easing of the regulatory regime, also help insurance penetration in the country, the study said.

“Several factors such as a growing middle class, young population and increasing awareness towards the need for protection and retirement planning will enable further growth," it said .

In a statement, Assocham said the study indicated insurance penetration in the country to have reached 3.7% in 2017, from 2.71% in 2001, and that gross premium had increased from INR3.2 lakh crore ($44 bn) in FY2012 to reach INR5 lakh crore in FY2018.

The government's ambitious Ayushman Bharat scheme covering 100m poor and vulnerable families with a cover of INR5 lakh per family of tertiary care and hospitalisation will be transformative for the insurance industry as it would have a major multiplier effect on a host of allied sectors and create lakhs of new jobs, it added.

According to the industry body, private sector companies, which presently hold close to 48% market share in the country's general insurance business and 29% in life insurance, will see a big growth in opportunities.