In a recent plea to the government, the General Insurance Council (GIC) has called for a reduction in the Goods and Services Tax (GST) on health insurance premiums. Currently, health insurance policies attract an 18% GST, a rate which the GIC argues is burdensome for policyholders, particularly amid the escalating healthcare costs post-pandemic.
Source:- news 18
The council proposes lowering the GST rate to 5%, aligning with the essential nature of health insurance in providing financial protection against medical emergencies. The GIC believes this reduction will not only make health insurance more affordable but also encourage wider adoption among the uninsured population, enhancing the overall financial security and health coverage in the country.
Source:- BBC news
Lowering the GST on health insurance is seen as a crucial step to boost penetration, especially considering that a significant portion of India’s population still lacks adequate health coverage. With rising medical inflation and the increased incidence of lifestyle diseases, making health insurance more accessible is critical. The GIC’s appeal underscores the need for policy adjustments to ensure that financial burdens do not deter people from securing essential health coverage.
The council’s recommendation comes at a time when the government is actively seeking ways to alleviate healthcare costs and expand insurance coverage, potentially aligning with broader public health and economic goals.
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