Yes it would cost $800B dollars if all 100 million insured fall ill at the same time and use the entire 5 lakh rupees allocated: which is highly unlikely. This

Yes it would cost $800B dollars if all 100 million insured fall ill at the same time and use the entire 5 lakh rupees allocated: which is highly unlikely. This is pretty much how insurance works in any part of the world. The only difference here is that it's allocated out of tax payer money.