This demand was raised during a discussion on the lack of health insurance coverage in the middle class. The General Insurance Council has demanded that health insurance be made compulsory for every employee in India on the lines of America.
The head of the General Insurance Council has suggested that all companies in the country should provide health insurance to employees and expand its coverage. He has suggested allowing the use of CSR funds to help pay premiums and combining corporate health insurance plans with state government schemes. This demand arose during a discussion on the lack of health insurance coverage in the middle class.
In fact, in the US, it is legally mandatory for all companies to provide health insurance coverage to employees. Although this will not cost the government anything, there may be some additional cost. The way out is to allow it as part of the Corporate Social Responsibility budget or link employees to low-cost government insurance cover.
Benefit from increasing health insurance coverage
Tapan Singhal, head of the GI Council and MD and CEO of Bajaj Allianz General Insurance, said, as health insurance coverage expands, it generates more demand and cash flow in the health care system. This increased demand and funding can encourage the construction of more hospitals, clinics and basic medical infrastructure to meet the growing health care requirements. He said that the payment of more than Rs 75,000 crore in health insurance claims in FY 2024 has led to the construction of new hospitals across the country.
The council is also asking the government to use the insurance industry database to issue notices to vehicle owners who have not renewed their mandatory insurance. Singhal said, “This data is available at the state level, which will make it easier for officials to identify uninsured vehicles. They are talking to the concerned state secretaries in this regard.”
