Insurers’ Group Calls for GST Reduction on Health Policies to Boost Coverage
Insurers’ Group Calls for GST Reduction on Health Policies to Boost Coverage

Latest News

The Confederation of General Insurance Agents’ Associations of India has urged the government to reduce the Goods & Services Tax (GST) on individual health insurance policies from 18% to 5% to promote social security. The move is aimed at encouraging more people to purchase health insurance policies, as the current high GST rate has led to a decline in renewal rates and an increase in out-of-pocket expenses for healthcare. According to the association, the average percentage of renewal of retail health insurance policies is at 65%-75%, and senior citizens need to spend an average of Rs 12,000-Rs 15,000 (around US$143.62-US$179.53) for health insurance coverage worth Rs 1 lakh (roughly $1,196.87). The confederation believes that reducing the GST rate will benefit consumers and increase the likelihood of ordinary people purchasing an insurance policy.
Source and Details

Related News