'Minimize GST slab for health insurance premiums'

By Ashish Mehrotra

“In this budget, we are looking forward to the government increasing its overall earmark on the health sector. An important recommendation which is being voiced collectively by the industry is to remove GST or minimize GST slab for health insurance premiums paid. Currently, the GST of 18% implied on health insurance premium is very high from a customer’s point of view and with the removal of GST, customers will be charged much less and it will be a big driving factor for them to invest in health insurance. Further, to encourage more and more new customers to insure themselves for a longer period, tax exemption should be available each year based on the number of years covered. Alternatively, tax exemption can be multiplied by a number of years of coverage. The tax benefit is something that customers expect in any form of investment they make, including health insurance.

These measures will surely help boost health insurance penetration in India as well as encourage a culture of preventive healthcare in India. For specialized health insurance companies, the period of carrying forward of business loss and depreciation should be extended to at least 12 years.”

The author is the MD & CEO of Max Bupa Health Insurance.