- The Confederation of General Insurance Agents’ Associations of India has requested Finance Minister Nirmala Sitharaman and the GST Council to reduce GST on retail health insurance policies from 18% to 5%.
- The memorandum was also sent to the Prime Minister, chief ministers of all states, UTs, GST Council, the Parliamentary Standing Committee on Finance, and other stakeholders.
- Despite the gross premium nearly doubling in the last five years, the number of lives covered and policies issued remains low.
- The renewal rate of health insurance policies is declining due to frequent premium hikes and medical inflation.
- Out-of-pocket health expenses are at 48.2%, causing financial strain on poor people and senior citizens.
- Health insurance coverage is concentrated in only five states, leaving many areas underpenetrated.
- The Confederation highlighted that India has one of the highest GST rates on insurance globally.
- The goal of “Insurance for all by 2047” requires rationalizing GST on health insurance, as recommended by the standing committee on finance in its 66th Report.
Source: asiainsurancepost.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
