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.
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