As Covid’s pandemic continues to cause havoc in the country, the insurance sector is pushing for GST reductions on health policy to bring more people under insurance.
After a pandemic in March 2020 and a surge in health care costs, the health sector has already overtaken the motor segment to become the fastest growing segment of the insurance sector.
Today, protecting health is paramount, and in this context, health insurance should be considered an essential product, insurance experts say. “I urge the Finance Minister to consider reducing the health insurance GST from the current 18% to the lowest 5%. This move also makes health insurance more affordable and more people. Encourages people to buy health insurance, “said Shanai Gauche, Managing Director and Chief Executive Officer of Edelweiss Insurance.
In addition, due to the uncertainties caused by the Covid-19 pandemic, health insurance is routinely needed to protect yourself from uncertainties and make them more appropriate than ever. “The government should consider a significant reduction in GST, which applies to health insurance premiums currently claimed at 18%. This will allow people to buy health insurance and additional additional plans for the medical crisis. And you can protect yourself from emergencies, “said RoopamAsthana, CEO and full-time director of Liberty General Insurance.
According to insurance experts, Covid shook people and made them aware of the importance of getting health insurance. However, it would be very helpful if the government could consider raising the tax deduction limit under Article 80D of the Income Tax Act of Health Policy to bridge the gap between the realization and intent of actually purchasing health insurance. Given the high medical costs, higher tax refunds guarantee more disposable income in the growing middle class, thereby encouraging them to buy the coveted health policy, Gauche said. Tax refund.
Health protection is of paramount importance today, and in this context health insurance should be considered an essential product, insurance officials say.
“The next union budget calls on the government to step up measures to increase the country’s insurance penetration, as the majority of the country’s population remains uninsured or uninsured today,” Astana said. He said. According to IRDAI’s Annual Report-2020-21, India’s insurance penetration is 4.2% of GDP, compared to the global average of 7.4%, and as of March 2021, India’s non-life insurance penetration is It was only one. percent.
According to IRDAI, the insurance regulator, premiums collected under health insurance contracts increased by 28.78% to Rs. was. New India Assurance, the largest player in the segment, reported a premium collection of Rs 12,050 in nine months, up 46.73 percent from last year’s Rs 8,212. Insurance companies also report a surge in Covid claims over the past year. Covid’s average billing amount was Rs 1.23 per person, and as of September 2021, the average settlement amount was Rs 91,287.
Hospitals continue to change rates on a regular basis, according to people in the insurance sector. There is no agency that regulates hospitals regarding pricing and grading. There is no uniformity in the fee structure of hospitals nationwide. When Covid struck the country last year, patients were struck by several hospitals. However, regulators are currently not allowing insurers to raise their premiums each year, even though hospital costs are currently inflated by about 10-15%.
However, insurance officials said regulators do not currently have the infrastructure to regulate hospitals. “Healthcare is a state subject, so it would be a difficult proposal for IRDAI to regulate hospitals,” officials said.
As hospitals across the country follow different pricing structures, IRDAI’s chief executive recently suggested that the healthcare segment needs a separate regulatory agency or that IRDAI must be allowed to regulate hospitals. did.
..
