Page 11 - The Insurance Times October 2025

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In August, other insurers like Bajaj
GST relief on health insurance will widen coverage,
Allianz and Care Health also faced simi-
says NIC CMD lar warnings.
National Insurance Company CMD Rajeswari Singh Muni has said that ex-
empting health insurance premiums from GST could significantly boost re- Galaxy Health and Round
tail uptake. A price reduction would encourage both new customers and Table India partner to ex-
existing policyholders to opt for higher cover.
pand rural health cover
Currently, health insurance attracts 18% GST. Singh Muni noted that health
insurance already accounts for 41% of India's non-life insurance premiums, Galaxy Health Insurance has partnered
covering about 55 crore people. However, 40 crore Indians still remain un- with Round Table India (RTI) to expand
covered, forming the "missing middle" not served by either Ayushman insurance access to underserved rural
Bharat or paid insurance plans. and semi-urban populations. RTI is ac-
tive in 135 cities and has a strong net-
She stressed that the post-Covid period has heightened awareness about
work in education, health, and infra-
health risks, but affordability remains a barrier.
structure development.
At NIC, pricing factors include age, demographics, and rising healthcare
The collaboration will focus on reach-
costs. Singh Muni clarified that removing GST will not raise premiums im- ing India's "missing middle"-people not
mediately, but will instead make insurance more accessible. Nearly half of covered under Ayushman Bharat or
NIC's portfolio is already in the health segment.
private insurance-by combining
Galaxy's product innovation with RTI's
grassroots reach.
Star Health faces hospital complaints could lead to a suspension
of cashless services, forcing policyhold- G Srinivasan, MD & CEO of Galaxy
backlash, risk of cashless ers to switch to reimbursement mode. Health, said the partnership aligns
service suspension Star Health rejected the accusations as with the mission of 'Insurance for All by

Star Health & Allied Insurance may lose vague and said tariff negotiations are 2047'.
its cashless service network after AHPI, standard. The insurer assured custom- Galaxy aims to close the protection gap
representing 15,000 hospitals, accused ers that services would not be im- by offering affordable, innovative
it of unfair practices and issued a dead- pacted and highlighted its two-decade- health insurance tailored for rural
line of September 22 to resolve issues. long partnerships with over 14,000 populations. RTI's on-ground presence

The hospitals allege Star Health en- hospitals. will help deepen awareness and boost
forces outdated tariffs, arbitrarily de- The Insurance Ombudsman's 2023-24 penetration in hard-to-reach areas.
nies approvals, and rejects claims post- report noted over 13,000 complaints This initiative adds momentum to the
approval. The company has been against Star Health-more than all broader industry push for inclusion and
warned that failure to address these other top insurers combined. awareness in India's rapidly growing

The Insurance Times October 2025 11