Most of the time, it has found that the price of insurance policy starts to increase because of the moral hazard issue. People often find it difficult to buy insurance policy due to this increasing price. In case of Assam, health insurance coverage among the people is insufficient. Somehow moral hazard may be the reason behind it. This paper tries to examine the existence of moral hazard issue in case of Assam. For the analysis, secondary data have been used. In the study, it is found that the problem of moral hazard exists in the health insurance market of Assam.