Union Budget 2022: Finance Minister Nirmala Sitharaman will present the Union Budget 2022 in Parliament on February 1, which is a week away. Amidst the COVID-19 pandemic, there are expectations that this year’s budget will also focus on the healthcare sector like last year. On that note, it should also be kept in mind that the pandemic, which has had three distinct waves in India so far, has intensified the need to invest in insurance covers. Health insurance has become even more important due to rising hospitalization rates, while life insurance cover has come in handy as the number of deaths has increased over the past two years.
While insurance providers have seen themselves playing an important role over time, the rate of insurance penetration in India is still low. To turn the tables, according to experts, a few changes in Budget 2022 Health insurance is essential in the sector as covid-19 stays here for a long time.
“In the wake of the Covid 19 pandemic, insurance has emerged as the most essential tool to secure the family from financial uncertainty. The industry has long expected policy makers to encourage people to Insurance Tarun Rustagi, Chief Financial Officer, Canara HSBC OBC Life Insurance said, “By giving a separate deduction limit of minimum Rs 1 lakh for insurance premium payment under section 80C.”
Commenting on the need to reduce GST on health insurance products Union Budget 2022Rustagi said, “Going forward, even though GST is not included in the budget, policy makers should also look at waiving or reducing GST rates on life insurance products and these should ideally be classified under essential product category. “
Speaking on similar lines, Niva Bupa CEO and MD Krishnan Ramachandran said that 18 per cent GST on health insurance products increases the premium amount.
“The 18 per cent GST that is currently levied on health insurance products increases the premium amount which acts as a deterrent for many potential policy buyers. The reduction in GST amount for health insurance schemes will make the products affordable to the general public and encourage higher penetration in the consumer segments.”
“Government may consider doubling the medical insurance limit under section 80D to Rs 50,000 in light of higher medical expenses post covid. One of the major challenges to the low penetration of health insurance is the affordability factor,” he said.
Rakesh Jain, CEO, Reliance General Insurance Company Ltd. said that bringing health facilities under the purview of infrastructure will lead to increased funding from large institutions.
“For the Union Budget 2022, the government should consider bringing healthcare facilities like diagnostic centres, specialized hospitals, wellness facilities under the “infrastructure” category. It will bring in funding from large institutions, including insurance companies, which will “ “Insurance and healthcare sectors need to grow together to promote access to quality and affordable healthcare,” Jain said on Budget 2022.
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