The Confederation of General Insurance Agents’ Associations of India has urged the government to decrease the GST on individual health insurance policies from 18% to 5%. This initiative aims to promote the purchase of health insurance as a form of social security.
The association emphasized the significant increase in health insurance premiums over the past five years, leading to growth in the segment. However, despite this growth, the number of lives covered and policies issued remains relatively low. The association highlighted the decline in policy renewal rates due to frequent premium hikes and rising medical inflation.
They emphasized the financial strain on policyholders caused by the high GST rates, which are notably higher than those imposed by other countries. Additionally, they noted the substantial cost for senior citizens to obtain health insurance coverage. Given these factors, the association has urged the government to consider reducing GST rates on health insurance policies, citing the importance of health insurance and the need to address low penetration and declining renewal rates.
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