The partnership with Appolo Munich Insurance will target 16 million households, according to a statement. The range of products will combine financial protection and health and lifestyle management support for non-communicable diseases, such as hypertension, heart disease, diabetes and cancer.

"The higher out-of-pocket expenditure of around 61 per cent incurred by consumers to address medical and health needs, coupled with around 38 per cent of emerging affluent without health insurance, demonstrates the potential to serve this segment," said Kartik Kaushik, deputy country business manager, global consumer bank, for Citibank India. 

According to the Insurance Regulatory and Development Authority, India's health insurance premium market went up by 16.57 per cent in the 2012-13 year to around Rs15,700 crore ($2.6 billion), which indicates a low level of penetration relative to health-related spending.