Page 13 - Insurance Times March 2022

Health Insurance

News

Insurers push for GST cut Roopam Asthana, CEO & Whole-Time proving to be less severe than the first
Director, Liberty General Insurance. two, there has not been a significant
on health policies
Covid has shaken people and made rise in health insurance claims for the
With Covid pandemic still playing havoc them realise the importance of having general insurance sector which had
in the country, the insurance sector is seen a deluge of claims after the sec-
pushing for a reduction in the GST on a health insurance, insurance experts ond wave.
said. However, to close down on the
health policies to bring more people "There have not been too many cases
under the insurance umbrella. gap between realisation and intention
to actually buying health insurance, it of hospitalisation in the current cycle
Overtaking the motor segment, the would really help if the government of Covid-19. Hospitalisation was only in
health sector has already become the could consider increasing the tax deduc- cases where the patient had some
fastest growing segment in the insur- tion limit under section 80D of the In- other complication; most patients
ance sector after the pandemic hit the come Tax Act for health policies. Given managed under home isolation this
country in March 2020 and medical the high medical costs, a higher tax time," said Bhaskar Nerukar, Head -
costs surged. Health Claims, Bajaj Allianz General
rebate will ensure more disposable in-
Currently, protecting health is para- come with the growing middle class, Insurance.
mount and in this context, a health thereby encouraging them to buy the At present, Covid-related claims for
insurance should be viewed as an es- much-needed health policy, Ghosh said. the insurer are at just 8 per cent of the
sential commodity, insurance experts "In the upcoming union budget, we claims it received in the second wave
said. "I would request the Finance Min- request the government to intensify of the pandemic.
ister to consider the reduction of GST steps towards increasing insurance "As the infection is milder, the Covid-
for health insurance from the current penetration in the country, since even related claim size also came down by
18 per cent to the lowest slab of 5 per a large part of the population in the 17-18 per cent while the duration of
cent. This move will also make health country still remains underinsured or hospital stay is also lesser. Even in
policies more affordable and push more uninsured," Asthana said. As per
and more people to buy a health IRDAI's Annual Report-2020-21, insur- terms of home isolation, just 10 per
cover," said Shanai Ghosh, Executive cent of the overall Covid-19 claims are
ance penetration in India stands at 4.2
Director & CEO, Edelweiss General In- for home isolation this time, compared
surance. per cent of the GDP as against the glo- to 25 per cent at the peak of the sec-
bal average of 7.4 per cent, and as of ond wave," Nerurkar said.
"The government should consider a March, 2021 the non-life insurance
drastic reduction in the GST applicable penetration in India stood at barely 1 However, this time around too, claims
on health insurance premiums which is per cent. for other hospitalisations have come
currently charged at 18 per cent. This down as people may be postponing
will encourage people to purchase Health insurance claims elective and non-urgent procedures.
health insurance and additional top-up These claims have come down by al-
plans to protect themselves from medi- stay stable most nine per cent, he added.
cal crises and emergencies," said With the third wave of the pandemic According to Satish Gidugu, CEO and

The Insurance Times, March 2022 13