Blockchain technology is revolutionizing the insurance sector by addressing challenges such as fraud, data security, and inefficiencies in claims processing. Blockchain through smart contracts can automate claim settlements, reduce administrative delays, and eliminate intermediaries. Decentralized Finance (DeFi) operating on blockchain networks has been implemented in the financial services sector and also in other sectors such as insurance, real estate and supply chain. With its wide acceptance in the finance and insurance sectors, the benefits of this technology can be leveraged to offer end-to-end solutions in the health insurance sector where transparency, data security and efficiency are essential. It is vital to examine the extant of global research and to understand the acceptance by consumers for its feasibility of its implementation in the Indian context. Bibliometric analysis using PRISMA framework in VOS viewer is carried out in this study to examine the extent of global research of blockchain and DeFi in the health insurance sector. The intention to adopt DeFi by consumers for their health insurance services is examined by conducting an online survey using a structured questionnaire. The extended model of Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) with added variables transparency and accessibility was adopted in this study to identify the key variables influencing the behavioural intention to adopt DeFi and Structural Equation Modelling was employed. The findings from bibliometric analysis revealed that DeFi enhances security and efficiency, however interoperability issues, legal difficulties, and data privacy concerns are areas of concern for adoption. The SEM analysis results showed that Performance Expectancy, Price Value, Habit, Accessibility, and Transparency were the key determinants influencing the behavioural intention to adopt DeFi in the health insurance sector. The findings reveal that DeFi adoption in the health insurance sector promises a safer, transparent and effective system, however attention on regulations, and focus to AI driven advancements needs to be addressed.