Non-Life Insurance Body seeks cut in GST on Health Policies

In order to encourage people to avail the health policies as a measure of social security, an umbrella body of non-life insurance agents known as the Confederation of General Insurance Agents’ Association of India has urged the government to reduce the GST taxed on individual health insurance policies from existing 18 percent to 5 percent.

In fiscal 2023–24, the general insurance sector in India collected premiums totalling up to Rs 109,000 crore under the health portfolio. 

Despite the fact that the gross premium has nearly doubled over the past 5 years, which has helped the health insurance industry in the nation grow, the Confederation of General Insurance Agents’ Association of India claimed that the number of policies issued and the virtual number of lives covered have remained extremely low. 

The confederation said that the percentage of out-of-pocket health expenses is still 48.2%, which forces the average person to pick up the tab for a costly medical procedure and forces senior citizens with health insurance to pay a premium of Rs 12,000 to Rs 15,000 per month out of their meager income.