The past two years have certainly underlined the importance evidently, of securing our health more than ever before. With rising treatment costs, there is a huge impact on our emotional and financial well-being. The pandemic has also ascertained the need for health insurance which can help mitigate the financial burden of treatments, hospitalisation, and even post-Covid medical expenses.
However, currently, there is an 18 % GST levied on the health insurance premium calculated after factoring in the age and sum insured (coverage amount) of the plan. There is a need to make health insurance more affordable and broaden access to quality healthcare for all Indians by reducing the GST levied.
Commenting on this, Mr. Shreeraj Deshpande, Head – Health Vertical, SBI General Insurance said, “We have seen an uptick in health insurance premiums over the last two years, as many Indians have opted for insurance schemes to secure themselves financially against any health-related uncertainties that may arise. However, there is an opportunity to further increase insurance penetration in India and encourage more Indians to purchase health insurance, especially in rural areas, by making it affordable and reducing the GST levied on health insurance for a retail customer”.
Opting for a comprehensive and adequate health insurance is crucial, as it can cover pre and post hospitalization expenses, ambulance charges, costs associated with critical illnesses and a wide array of other expenses depending on the plan chosen. Further, it is also extremely useful when it comes to beating medical treatment inflation.
