Experts say that the central government can cut GST on the premium of life insurance and health insurance policy in the upcoming budget. So that insurance products reach the large population of the country.
New Delhi. If you are planning to buy insurance in the coming days, then the government can give you a big relief. To increase the reach of insurance products, there is a need to reduce the premium and keeping this in mind, the budget can reduce the GST rates on insurance policies, which will reduce the premium of insurance. Due to the cheapness of insurance products, people will show interest in buying term and health policies. Insurance products are still not accessible to a large section of the population in India.
According to the news of Money Control, experts say that the central government may cut GST on the premium of life insurance and health insurance policy in the upcoming budget. Finance Minister Nirmala Sitharaman will present the Union Budget on February 1, 2023.
Need to reduce insurance premiums
Krishnan Ramachandran, CEO and MD of Niva Bupa Health Insurance said that due to increase in medical inflation, the premium of health insurance policies has increased a lot. Due to this the common man is facing difficulty in buying health insurance policy. That’s why the government needs to take some measures to reduce the premium prices of the health policy.
Insurance companies say that the government should reduce GST rates on health insurance products, at present these rates are 18 percent. Liberty General Insurance CEO Rupam Asthana said that the demand for health insurance products is high, but people still find them very expensive and there is a need to reduce GST to make them affordable.
To increase the reach of insurance among the people, it is necessary that the government should announce incentives for those companies which invest in insurance products awareness. The advantage of this will be that they will be motivated to spread the information about their products to remote areas and this will make it possible to reach insurance products to a large section of the population.
