Health Insurance – Artifex.News

Health is wealth and both wear away

admin — Sun, 07 Jun 2026 02:48:00 +0000

Catch 22: As much as 15% premium rise in a year is quite a shocker.
| Photo Credit: Getty Images/iStockphoto

Health is wealth and conversely, ill-health is erosion of wealth. Conventional wisdom says this is where health insurance comes in. Until health insurance itself becomes a large drain on the pocket, ironically.

Things have been taking this direction in the last few years and now we have entered a stage where many are questioning the high premiums for reasonable levels of cover. And, by extension, wondering about health insurance economics and what it will become in the future. We will come back to this question in a bit but first let’s take specific examples of premium increases.

Steep increase

A ₹10 lakh hospitalisation policy for a 45-year-old costs ₹20,000 to 25,000 today compared with about ₹18,000 to ₹20,000 a year ago. As much as 15% increase in a year is quite a shocker but still tame compared with the 25- 30% increases for older people. Premium rates vary quite a bit by coverage, age, location and definitely insurance company, but the direction is clear, namely upwards, steeply. Before you think the premium jump is due to age 45 when you enter a new slab with higher rates, that was the case until last year. Annual increases have started across insurers and there are differentiations by zone as well.

Rising medical inflation

The reason offered is rising costs, centrally, medical inflation which is reportedly about 15% in recent years. The customer is still left wondering where this is all going. Going by this trend, in six or seven years our 45-year-olds would be paying double the premium for the same coverage. Or, her premium today will get her only half the sum insured. (Today’s 45-year-old, at 52 will be looking at a more intimidating premium situation!).

All this if today’s morbidity trends remain the same. Cancer diagnoses are growing, as are lifestyle diseases and God forbid another pandemic.

Sure, top-up policies help increase coverage for relatively much lower premiums and has been the portfolio tweak many have taken. It has taken the heat off those who want higher coverage but cringe at the premium rates of basic hospitalisation policies. Coming back to the basic policy, questioning the worth of insurance is an inadequate response. What about the cost of medical care WITHOUT insurance? Here is a creative idea — suggested in CoverNote a couple of years ago — which is now becoming the topic of family conversations and even decisions. Why not have only a top-up cover with a ₹10 lakh threshold and desired sum insured and be ready with funds to meet the first ₹10 lakh?

I know families that opted for this. Perhaps because paying an average of ₹1,00,000 a year for a ₹10 lakh policy for 10 years with no claim means you have paid the entire sum insured as premium and are set to keep paying.

Also, perhaps as they were denied hospitalisation cover due to age or medical reasons and they did not have much of a choice. In this situation, the top-up policy takes care of peak risk and the emergency medical fund pays bills of up to ₹10 lakh. Can this work? Yes and No. Let us see some scenarios in the next installment of CoverNote.

(The writer is a business journalist specialising in insurance & corporate history.)

Published – June 08, 2026 06:28 am IST

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When art wilts under the sun

admin — Sat, 28 Feb 2026 19:07:00 +0000

During the Tamil months of Chithirai and Vaikasi (April to June), temple festivals gather momentum across Tamil Nadu. On festival days, village squares and temple grounds slowly fill up even as the sun beats down mercilessly through the afternoon. By evening, performances of song, dance, drama, and ritual begin; people drop in, stay awhile, applaud, and move on, as the night wears on. For the artistes, though, the work starts hours before the first drumbeat and stretches well past the last act, and includes long spells of waiting, preparation, and travel before the performance itself.

A living archive

Tamil Nadu has a vast tradition of folk arts that span rituals, storytelling, music, and movement — from Koothu forms and Oppari lamentations to Parai drumming, Devarattam, Bommalattam (puppetry), and performances in front of the village deity. Many of these traditions are inseparable from temple festivals, agricultural cycles, and caste- and region-specific practices, and form part of a living cultural archive sustained often through oral transmission. In recent years, the State has sought to safeguard and promote these traditions through cultural festivals, documentation, and platforms that bring rural artistes to urban audiences. However, artistes face multiple pressures — among them is heat stress, an overlooked but increasingly felt challenge while performing under open skies.

The Kaniyan Koothu is an ancient folk performance tradition practised by members of the Kaniyan, a Scheduled Tribe community, in Tirunelveli district. Combining music, dance, singing, and narration, it is typically staged at temple festivals, particularly in rituals dedicated to the folk deity, Sudalai, where performers invoke the deity’s spirit through the recital.

Ganesha Moorthy, 45, from Vadakkankulam, describes his art form as an oral tradition passed down through generations. Performing largely across Tirunelveli, Tenkasi, Thoothukudi, and Kanniyakumari, in a troupe of seven to eight members, he said, “We sing the stories of Sivasudalai Maadan, Pechiamma, Karuppasamy, and also Sivapuranam, Empuranam, Kannagi Puranam, and so on.”

Made to wait

Their performances usually run through the night, from 9 p.m. to 4 a.m. “After the show, it takes an hour or so to pack our things up, and then we are usually made to wait for a couple of hours for payment, as the village head has some work. Sometimes, we are given tea,” Mr. Moorthy said, adding that the troupe typically arrives at venues well in advance during the day and spends hours waiting before the performance begins.

Hours spent waiting in open grounds, rehearsing under tin roofs, putting on and performing in heavy costumes are factors that are turning summer festivals into tests of endurance for folk artistes, who say rising heat is becoming another challenge layered onto the existing concerns such as shrinking patronage and dwindling audiences for folk arts.

About 74% of the people in Tamil Nadu are now living in areas where the air temperatures regularly hit over 35 degrees Celsius, according to a study released by the State Planning Commission (SPC) in 2025. Of the State’s 389 administrative blocks, 94 have experienced a ‘very high change’ in heat intensity from 1981 to 2023.

Living on the fringes: Many folk traditions are inseparable from temple festivals, agricultural cycles, and caste- and region-specific practices — forming part of a living cultural archive sustained largely via oral transmission.
| Photo Credit:
N. RAJESH

M. Chandrakumar, a resident of Kilnathur in Tiruvannamalai district, is an Oppari singer who has been performing for 30 years. While Oppari remains his primary art form, he trained in Periya Melam to supplement his income, as he says Oppari performances occur sporadically, typically following deaths in and around his village and often only for a few days each month. Despite three decades of experience, he says he may not be able to perform as long as the elders, from whom he learnt. “Around katthiri (the peak summer), it is not easy to perform without wearing slippers,” he adds.

In addition to the rising average daytime heat, nearly 70% of the districts in Tamil Nadu now have “very warm nights”, with temperatures between 26°C and 28°C. High night-time heat creates a cycle of thermal stress with no breaks, because it prevents the human body from shedding the heat accumulated during the day.

Lack of nocturnal relief

When minimum temperatures stay between 26°C and 28°C, the body’s natural cooling mechanisms are disrupted, leading to cumulative exhaustion, poor sleep quality, and increased cardiovascular strain. This lack of nocturnal relief is particularly dangerous for vulnerable groups such as the elderly and outdoor workers, as it significantly diminishes physical recovery and long-term productivity, the SPC study notes.

According to the study, the number of administrative blocks recording high night-time minimums has surged from just six blocks 20 years ago to 80 blocks today. Several artistes say many among them live with chronic conditions such as diabetes and hypertension, which may force them to step away from performance earlier than expected. While some take comfort in their children’s education as a safety net, it also means the younger generation is less likely to enter the arts, as many folk artistes themselves hope their children will move on to greener pastures. With senior performers retiring sooner and fewer successors stepping in, what does this mean for the future of folk traditions? Anitha Pottamkulam, Director-Culture, Dakshina Chitra, says that while factors such as migration have always affected the continuity of traditional art, climate change has worsened the situation. “They are dislocated. There is a loss of habitat and a loss of access to the materials and ecological resources they need to practise their craft. To that extent, climate and ecological change definitely adds to the existing challenges,” she says.

According to the United Nations Framework Convention on Climate Change (UNFCCC), traditional understandings of climate-related loss have largely centred on impacts that are measurable and monetisable, while non-economic losses — those not reducible to financial terms — remain significant yet under-recognised. Cultural heritage, in particular, has been largely absent from climate agreements and policy discussions, the UNFCCC notes. While heat affects everyone and all performances, its impact is not experienced uniformly. Human vulnerability to heat extends beyond physiological responses to include socio-economic factors such as income, access to healthcare, and housing conditions, the SPC study notes.

Little basic comfort

G. Sundarrajan of Poovulagin Nanbargal and a member of the Tamil Nadu Governing Council on Climate Change says folk artistes are frequently transported in cramped vans and rest at government schools, community halls, or in asbestos-roof shelters, leaving little scope for their bodies to thermoregulate. “When it comes to upper-caste arts, performances are often held in air-conditioned sabhas, but OBC and Dalit artistes usually perform in open rural spaces. Apart from differences in remuneration, there is a lack of basic comfort for the artistes,” he says.

For Shyamala and members of her Thirunangaiyar Kaali Aattam Kalai Kuzhu, an all-transwomen troupe from Cuddalore district, the discomforts are compounded. “We can’t even imagine using the restrooms at most places as they are all makeshift ones,” she says. As a result, they often avoid drinking too much water or even tea, even while wearing elaborate costumes and performing for long hours.

If performers face heat-related challenges, instrument makers — particularly those making thol karuvi or skin-based instruments — experience them even more acutely. P. Matheswaran, an Aadhi Melampractitioner from Salem district, describes enduring heat beyond performance hours. “The instrument we use is a thol karuvi. It holds the sruthi correctly only for a short period, so we have to keep heating it in a very specific way and for a set duration, not for too long, to get the right tone. During the summer months, it is a struggle to sit and hold the instrument, heating it over the fire,” he says.

Artistes spend long hours outdoors, performing through the night and then facing the morning heat, often without adequate time for their bodies to recover. “I started when I was a 10-year-old boy. In these 30 years, I can see how much things have changed. Our group has around 12 people. Many of them, including me, get exhausted more often now, or struggle to sleep properly after a show, even on nights when we don’t perform,” says Mr. Chandrakumar. During the off-season, he adds, they also take up daily wage labour, sometimes in neighbouring districts, to make ends meet. Ms. Pottamkulam says migration does not always sever tradition. “For example, Chennai has a very strong urban folk culture and this is really a product of people who have migrated from rural areas. Some performances are as grand as those in villages, though adapted to an urban scale. However, continuity depends on context. Certain forms, once removed from their original social and ecological milieu, struggle to survive,” she adds.

While government advisories urge people to remain indoors during peak morning heat, Mr. Sundarrajan points out that informal outdoor workers receive no compensation for lost workdays. Drawing a parallel with lean-period support extended to fisherfolk, he says vulnerable groups like folk artistes should also be considered a climate-vulnerable group and given compensation.

Systematic health check-ups

K. Manivasan, Additional Chief Secretary, Tourism, Culture and Religious Endowments Department, says the Tamil Nadu Folk Artistes Welfare Board, under the Department of Art and Culture, has over 50,000 registered members, many of whom have received financial assistance for education and marriage. However, he notes, two key areas require attention. The first is the need for systematic health check-ups and regular screening camps for artistes. “The Welfare Board will work with the Health Department for this,” he says. The second is ensuring that all artistes are covered under health insurance schemes. He adds efforts will also be made to enrol more artistes in the Board.

(This story is part of the Asian College of Journalism’s Climate Change Media Hub Mentorship Programme.)

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How tax break is reshaping health insurance choices

admin — Mon, 17 Nov 2025 00:32:00 +0000

Healthy result: The removal of GST has made health insurance premiums about 18% cheaper for individual buyers.
| Photo Credit: Getty Images/iStockphoto

When the government announced a 0% GST on retail health insurance premiums on September 22, it was welcomed as a move that would make protection more affordable. But in the weeks since, it has come to represent something far more significant.

The reform has not only reduced the cost of buying health insurance but has also reshaped how Indians think about coverage itself. For the first time, the focus is shifting from “how much premium do I pay” to “how much protection do I have.” The early signs of this behavioural shift are unmistakable. Following the GST waiver, demand for high-value health insurance plans has jumped sharply. At Policybazaar, we have seen a 38% increase in purchases of policies with higher sum insureds, with the ₹15-25 lakh range now dominating new sales. The average cover size has risen from ₹13 lakh to ₹18 lakh in a short span. This points to a deeper change in how people are approaching financial preparedness in the face of medical inflation.

The removal of GST has made health insurance premiums about 18% cheaper for individual buyers. Yet what is truly encouraging is how customers are responding. Instead of merely pocketing the savings, many are using it to upgrade to more comprehensive plans. This reflects a growing understanding that health insurance is not a cost to be minimised but a financial safeguard to be strengthened.

The pandemic played a big role in shaping this awareness. It exposed the real scale of medical costs and how quickly hospitalisation expenses can erode savings. The GST exemption seems to have built on that awareness, giving families the final nudge to secure policies that truly match their healthcare needs.

Awareness deepens

Interestingly, the appetite for better protection is no longer confined to metropolitan India. Smaller cities and towns are showing a sharp rise in the adoption of higher-value covers.

In Tier 2 markets, there has been a noticeable shift away from low-sum insured plans, with more customers now choosing policies that offer ₹15–25 lakh in coverage.

This is an important cultural moment in India’s insurance journey. For years, non-metro consumers have tended to prioritise affordability over adequacy, but that equation is changing. With rising awareness and easier access to digital platforms, families are opting to secure higher coverage earlier in life. The zero-GST move has given this shift a tangible push, removing one of the key barriers to entry.

What is heartening to see is that this surge is cutting across age groups. Millennials and mid-life earners are leading the upgrade trend, investing in plans that can protect them from lifestyle-related illnesses and unforeseen medical emergencies.

But even among senior citizens, there is a visible change in mindset.

More customers in their sixties and seventies are choosing comprehensive covers instead of limited ones, recognising that long-term financial independence depends as much on health security as on income.

This growing alignment across generations is a strong indicator of how the insurance mindset in India is maturing. Younger buyers are planning early, while older ones are ensuring they are not left vulnerable. Both are making informed choices rather than reactive ones.

Alongside the move toward larger covers, we are also seeing a rise in the adoption of add-ons and long-term plans. Riders such as Day-1 Pre-existing Disease and critical illness cover are gaining traction, as buyers increasingly prefer policies that provide immediate and comprehensive protection. Similarly, more customers are opting for multi-year policies.

These trends together suggest a clear shift from transactional buying to thoughtful financial decision-making.

The zero-GST reform has, in effect, unlocked the value perception of health insurance. By making it more affordable, it has also made it more aspirational, a product people now want to invest more meaningfully in.

The government’s move to exempt health insurance from GST may have started as a fiscal reform, but its true impact is behavioural. It has widened the accessibility of health coverage and encouraged a national rethink on what adequate protection means.

The GST reform has helped add something far more enduring, trust, awareness, and a willingness to plan for health proactively.

(The writer is Head, Health Insurance, Policybazaar)

Published – November 17, 2025 06:02 am IST

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TPA tangle in health insurance

admin — Sun, 09 Nov 2025 23:15:00 +0000

Image for representation only
| Photo Credit: Getty Image/iStockphoto

Among the many moving parts of a hospitalisation insurance policy is a key intermediary — the Third Party Administrator (Health Services), or TPA.

TPAs handle claims management on behalf of insurers. Earlier, such work was done by the claims departments of the insurance companies, well-versed in the specific requirements of fire, marine, health or motor insurance. The idea of outsourcing health claims emerged when the Insurance Regulatory and Development Authority (IRDA, as it was then known) issued regulations in 2001 allowing TPAs to operate.

These TPAs were meant to serve as a bridge between insurers, hospitals and policyholders — helping customers with documentation, processing claims under the insurer’s rules, and settling hospital bills directly under the “cashless” system so that the insured didn’t have to pay upfront and wait for reimbursement.

Early troubles

In the beginning, TPAs took time to come to grips with both insurance and healthcare processes. Customers complained of arbitrary claim reductions or outright rejections. Then came the “float” problem: insurers advanced funds to TPAs for approved claims, but some TPAs delayed payments to hospitals to earn interest on the idle funds. This led to disputes and tighter regulation.

Meanwhile, hospitals realised that the insurance system — despite its paperwork — brought in paying customers. Even government hospitals began preferring insured patients as a source of income rather than free service.

The cashless crunch

As medical costs soared, insurers created closed networks of hospitals with negotiated package rates to contain pricing discrepancies. But this arrangement often left the policyholder stranded — hospitals charged one rate, insurers reimbursed another, and the patient quietly bore the difference.

Eventually, hospitals began protesting too, citing delays in updating tariff agreements and in receiving claim payments from TPAs. Many took to demanding full advance payment from patients to be reimbursed when the insurer/TPA pays out the claim, subverting the very concept of cashless treatment!

In recent months tensions have escalated, with insurers and hospitals blacklisting each other and patients caught helplessly in between. As it is, hospitalisation insurance has been topping the list of general insurance complaints before Insurance Ombudsmen for decades now.

What needs fixing

India’s healthcare operates in a liberalised, market-driven environment — but the absence of price discipline and uniformity is hurting everyone. A measure of standardisation in hospital tariffs, albeit factoring in differences in facilities and location, is essential. Market segmentation is fine; unregulated pricing is not.

Expanding and upgrading the network of public, community and charitable hospitals can ease the burden on both private healthcare and the customer’s wallet. Quality must be benchmarked, monitored and rewarded. The NABH accreditation system has created a base level of quality for hospitals. A similar grading system for TPAs — importantly incorporating customer ratings — would introduce much-needed transparency and accountability. Come to think of it, independent customer ratings for hospitals on a range of factors from pricing to standards to service quality would be very useful too.

Ultimately, while the insurer–TPA relationship may be contractual, the real test is service to the insured. The customer, after all, is not just the policyholder — but the patient.

(The writer is a business journalist specialising in insurance & corporate history)

Published – November 10, 2025 04:45 am IST

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Exemption of GST from life and health insurance premium to make products affordable: Insurers

admin — Thu, 04 Sep 2025 10:04:00 +0000

Since its inception in July 2017, GST at the rate of 18% is levied on premium paid towards health insurance. (Image used for representation purpose only)
| Photo Credit: Getty Images/iStock Photo

Terming the GST Council’s decision to exempt insurance premium from the indirect tax as a landmark move, insurers said this will help make products more affordable and expand insurance penetration.

GST Council meeting highlights on September 4, 2025

Announcing the outcome of 56th GST Council meeting, Finance Minister Nirmala Sitharaman on Wednesday (September 3, 2025) said all individual life insurance policies whether term life, ULIP or endowment policies and subsequent reinsurance are exempt from GST.

All individual health insurance policies, including family floater policies and policies for senior citizens and reinsurance thereof, will also be exempt from GST, she said.

Since its inception in July 2017, GST at the rate of 18% is levied on premium paid towards health insurance and life insurance.

Commenting on the GST Council decision, LIC CEO & MD R. Doraiswamy termed the rate rationalisation as “visionary initiative”.

Removal of GST on individual life insurance products, a step towards making life insurance more affordable to all citizens of the country to meet the objective of insurance for all by 2047, Mr. Doraiswamy said.

Sharing his thought Ashok P. Hinduja, chairman, Hinduja Group of Companies (India) said steps like removing GST on life and health insurances will prove to be revolutionary in this regard.

At a time when medical inflation is rising steeply, this step directly benefits citizens and eases the financial burden on families, Bajaj Allianz General Insurance MD & CEO Tapan Singhel said.

This progressive decision will accelerate insurance penetration and strengthen the nation’s health security, he said.

Echoing similar views, HDFC ERGO General Insurance executive director & CFO Samir Shah said from a consumer standpoint, the immediate benefit is that it directly translates to enhanced affordability.

However, he said, “We are closely analysing the implications concerning the input tax credit. While it is anticipated that there will be lowering of the premiums due to lowering of the taxes, we are yet to understand the extent of this reduction as this will also depend upon availability of the input tax credit, which will become clearer over the coming days.”

Commenting on the decision, IFFCO TOKIO General Insurance MD & CEO Subrata Mondal said the removal of GST is expected to significantly enhance the affordability of health insurance, thereby improving penetration across diverse population segments.

Reduced premium costs will likely incentivise more individuals and families to purchase or upgrade their health insurance coverage, strengthening financial resilience against medical expenses and easing out-of-pocket burdens, Mr. Mondal added.

ManipalCigna Health Insurance MD & CEO Joydeep Saha this much-awaited reform will help millions of households safeguard themselves against unforeseen medical expenses without worrying about affordability at a time when medical costs and healthcare inflation are on the rise.

The reform will not only benefit existing customers but also empower more families to opt for health insurance coverage, Mr. Saha added.

Insurance Brokers’ Association of India (IBAI) president Narendra Bharindwal said the exemption of GST on all individual life insurance policies, whether term life, ULIPs, or endowment and on individual health insurance policies, including family floater and senior citizen plans, marks a historic step towards universal insurance inclusion.

Aalesh Avlani, co-founder, Credit Wise Capital, this reform will further accelerate the shift towards digital-first, hassle-free financing solutions, empowering more consumers to fulfil their aspiration of owning a two-wheeler.

Published – September 04, 2025 03:34 pm IST

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Insurance stocks in limelight; Star Health up over 9% as life, health insurance exempt from GST

admin — Thu, 04 Sep 2025 06:35:00 +0000

All individual life insurance policies, whether term life, ULIP or endowment policies and subsequent reinsurance are exempt from GST, Finance Minister Nirmala Sitharaman on September 3, 2025. (Representational image)
| Photo Credit: Getty Images/iStock Photo

Insurance stocks were in heavy demand on Thursday (September 4, 2025), with Star Health surging over 9%, as life insurance and health insurance premia would come down as such products are now exempt from goods and services tax (GST).

Announcing the outcome of 56th GST Council meeting, Finance Minister Nirmala Sitharaman on Wednesday (September 3, 2025) said all individual life insurance policies, whether term life, ULIP or endowment policies and subsequent reinsurance are exempt from GST.

Shares of Star Health and Allied Insurance Company skyrocketed 9.35%, Niva Bupa Health Insurance Company zoomed 9%, ICICI Prudential Life Insurance Company jumped 5.70%, ICICI Lombard General Insurance Company rallied 5%, Life Insurance Corporation of India climbed 5%, HDFC Life Insurance Company went up 4.90% and SBI Life Insurance Company surged 4.88% on the BSE.

“While the direct beneficiaries include consumer, auto, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs,” Rahul Singh, CIO-Equities, Tata Asset Management, said.

All individual health insurance policies, including family floater policies and policies for senior citizens and reinsurance thereof will also be exempt from GST, she said.

Since its inception in July 2017, GST at the rate of 18% is levied on premium paid towards health insurance and life insurance.

“We will make sure that companies pass on GST rate reduction and make insurance affordable for the common man and increase the insurance coverage in the country,” she said.

She further said the new rates would be effective from September 22, the first day of Navratri.

“Some of the key sectors that stand to benefit from this are insurance, FMCG, automobiles, agriculture equipment, cement, consumer durables, apparel, footwear, QSR, and retail,” Pranav Haridasan, MD and CEO, Axis Securities, said.

Published – September 04, 2025 12:05 pm IST

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What’s The Health Insurance Scheme For Everyone Over 70

admin — Wed, 11 Sep 2024 18:25:10 +0000

Everyone who is 70 years old and above can get the national health insurance scheme

New Delhi:
In a move that will help 4.5 crore families, the Union Cabinet on Wednesday approved health coverage to all senior citizens aged 70 years and above irrespective of their income under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY).

Here’s your 5-point cheat sheet to this big story

All senior citizens who are 70 years old and above, irrespective of their socio- economic status, would be eligible to avail the benefits of AB PM-JAY.

Senior citizens (70-plus) belonging to families already covered under AB PM-JAY will get an additional top-up cover up to Rs 5 lakh per year for themselves. They do not have to share the cover with other members of the family who are below 70 years.

Senior citizens (70-plus) who are already getting benefits of other public health insurance schemes such as Central Government Health Scheme (CGHS), Ex-Servicemen Contributory Health Scheme (ECHS), and Ayushman Central Armed Police Force (CAPF) can keep their existing scheme, or opt for AB PMJAY.

Senior citizens (70-plus) covered by private policies or Employees’ State Insurance Scheme are eligible for AB PM-JAY.

The AB PM-JAY is the world’s largest publicly funded health assurance scheme which provides cover of Rs 5 lakh per family per year for secondary and tertiary care hospitalisation to 55 crore people, corresponding to 12.34 crore families.

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Budget 2024: Insurers expect more tax benefits for health insurance in Union budget

admin — Fri, 12 Jul 2024 07:11:34 +0000

More tax benefits for health insurance under the new tax regime, relaxation in payment norms for MSMEs and incentives for the agri-tech sector are among the expectations of stakeholders from the first budget of the Modi 3.0 government.

Finance Minister Nirmala Sitharaman is scheduled to present the full Budget for fiscal 2024-25 on July 23, which will be the first major policy document of the new government.

Click here for more 2024-25 Budget related updates

Anup Rau, Managing Director and Chief Executive Officer of Future Generali India Insurance Company, said the deduction limit on health insurance premiums under Section 80D of the Income Tax Act has remained unchanged for the past nine years despite the fact that there has been a significant rise in healthcare costs across the country.

“It would be best if the limit for medical insurance is linked to inflation and gets revised automatically every year or once in a couple of years. Also, the benefits need to be extended to the New Tax regime since increasing health insurance penetration is critical. So, we hope the upcoming Budget to announce some hike in the deduction limit on health insurance premiums,” Rau said.

Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, said reforms like offering health insurance to employees at negotiated rates, reducing GST on health insurance premiums, and offering tax benefits like increased Section 80D exemption limits would make health insurance more affordable and accessible, especially for the ‘missing middle’ segment of our population.

“Additionally, for senior citizens, removing the limit on deductions for health insurance premiums would significantly ease their financial burden,” Mr. Singhel said.

The Finance Minister is likely to lay out the government’s economic agenda in the budget.

On expectations from the Ms. Sitharaman’s budget, D S Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC), said the focus on reforming cancer care in India is crucial and it is important to prioritise funding for advanced treatments like immunotherapy and personalised medicine, ensuring more patients can access these cutting-edge therapies.

“Extending Ayushman Bharat to those aged above 70 years will be highly beneficial for senior citizens. However, the current coverage limit of ₹5 lakh may not be sufficient for critical illnesses such as cancer, where treatment costs can range from ₹15-20 lakh.

“Therefore, it is essential to consider increasing the coverage limit for critical illnesses like cancer to ensure adequate financial support for cancer patients,” Mr. Negi added.

The budget is likely to include steps to fast-rack reforms to make India a USD 5-trillion economy in the near future and turn the country into a ‘Viksit Bharat’ by 2047.

Ahead of the budget, Chairman of the Medical Technology Association of India (MTaI) Pavan Choudary said that customs duties and taxes levied on medical devices in India are one of the highest in the world which directly impacts patient affordability.

“On the other hand, countries like Singapore, Hong Kong, Italy, and Norway impose no such duties. Australia and Japan levy only a minimal 0.5 per cent duty, while in the United States, it stands at 2 per cent, and in China at 3 per cent.

“This stark contrast creates risk for illegal imports of medical devices in India that are not backed by legal and service guarantees. Furthermore, such trade would undercut the Indian government’s tariff revenue,” he said.

Vivek Jalan, Partner at Tax Connect Advisory Services LLP, said as per recommendations of Micro, Small & Medium Enterprises (MSMEs), Section 43B(h) in the Income Tax Act was introduced from AY 24-25. However, the alignment of the disallowance for payables under sections 43B(h) of the Act has been made with the MSME Act, which requires that payment has to be made to an SME within a maximum of 45 days.

“This is difficult in the present-day trade where a 60-90 days credit period is the norm.

“In this budget, it is expected that this provision will be relaxed/amended aligning the same with the CGST Act w.r.t. disallowance when payment to SMEs is not made within 180 days. Hence, in case a taxpayer does not pay an SME within 180 days, then the expense may be added back to his income,” he said.

In anticipation of the budget, Saurabh Rai, CEO of Arahas, has expressed high expectations for substantial investments in sustainability and geospatial technology.

“We anticipate significant allocations towards renewable energy projects and incentives for companies embracing green technologies,” he said.

Additionally, Rai said that boosting agri-tech innovations, providing tax incentives for tech companies and investing in human capital development is imperative for driving sustainable growth.

Sanjay Kumar, Founder and CEO of Geospatial World, said that to fully leverage the power of digital twin technology, it is crucial to allocate dedicated funds to it in the Union Budget.

“This allocation will facilitate the widespread adoption of digital twins, driving efficiency gains, cost savings, and improved decision-making in infrastructure projects. By investing in this technology, India can achieve significant long-term benefits, such as enhanced asset management, reduced downtime, and increased resilience to environmental challenges,” Mr. Kumar said.

Ms. Sitharaman was given charge of the finance portfolio in the second stint of the Modi government after the 2019 general elections, becoming the first full-time woman Finance Minister in independent India.

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Insurers Expect More Tax Benefits For Health Insurance

admin — Thu, 11 Jul 2024 17:20:30 +0000

The finance minister is likely to lay out the government’s economic agenda in the budget.

New Delhi:

More tax benefits for health insurance under the new tax regime, relaxation in payment norms for MSMEs and incentives for the agri-tech sector are among the stakeholders’ expectations from the first budget of the Modi 3.0 government.

Finance Minister Nirmala Sitharaman is scheduled to present the full Budget for fiscal 2024-25 on July 23, which will be the first major policy document of the new government.

Anup Rau, Managing Director and Chief Executive Officer of Future Generali India Insurance Company said the deduction limit on health insurance premiums under Section 80D of the Income Tax Act has remained unchanged for the past nine years even though there has been a significant rise in healthcare costs across the country.

“It would be best if the limit for medical insurance is linked to inflation and gets revised automatically every year or once in a couple of years. Also, the benefits need to be extended to the New Tax regime since increasing health insurance penetration is critical. So, we hope the upcoming Budget to announce some hike in the deduction limit on health insurance premiums,” Rau said.

Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, said reforms like offering health insurance to employees at negotiated rates, reducing GST on health insurance premiums, and offering tax benefits like increased Section 80D exemption limits would make health insurance more affordable and accessible, especially for the ‘missing middle’ segment of our population.

“Additionally, for senior citizens, removing the limit on deductions for health insurance premiums would significantly ease their financial burden,” Singhel said.

The finance minister is likely to lay out the government’s economic agenda in the budget.

On expectations from Nirmala Sitharaman’s budget, D S Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC), said the focus on reforming cancer care in India is crucial and it is important to prioritise funding for advanced treatments like immunotherapy and personalised medicine, ensuring more patients can access these cutting-edge therapies.

“Extending Ayushman Bharat to those aged above 70 years will be highly beneficial for senior citizens. However, the current coverage limit of Rs 5 lakh may not be sufficient for critical illnesses such as cancer, where treatment costs can range from Rs 15-20 lakh.

“Therefore, it is essential to consider increasing the coverage limit for critical illnesses like cancer to ensure adequate financial support for cancer patients,” Negi added.

The budget is likely to include steps to fast-rack reforms to make India a USD 5-trillion economy in the near future and turn the country into a ‘Viksit Bharat’ by 2047.

Ahead of the budget, Chairman of the Medical Technology Association of India (MTaI) Pavan Choudary said that customs duties and taxes levied on medical devices in India are one of the highest in the world which directly impacts patient affordability.

“On the other hand, countries like Singapore, Hong Kong, Italy, and Norway impose no such duties. Australia and Japan levy only a minimal 0.5 per cent duty, while in the United States, it stands at 2 per cent, and in China at 3 per cent.

“This stark contrast creates risk for illegal imports of medical devices in India that are not backed by legal and service guarantees. Furthermore, such trade would undercut the Indian government’s tariff revenue,” he said.

Vivek Jalan, Partner at Tax Connect Advisory Services LLP, said as per recommendations of Micro, Small & Medium Enterprises (MSMEs), Section 43B(h) in the Income Tax Act was introduced from AY 24-25. However, the alignment of the disallowance for payables under sections 43B(h) of the Act has been made with the MSME Act, which requires that payment has to be made to an SME within a maximum of 45 days.

“This is difficult in the present-day trade where a 60-90 days credit period is the norm.

“In this budget, it is expected that this provision will be relaxed/amended aligning the same with the CGST Act w.r.t. disallowance when payment to SMEs is not made within 180 days. Hence, in case a taxpayer does not pay an SME within 180 days, then the expense may be added back to his income,” he said.

In anticipation of the budget, Saurabh Rai, CEO of Arahas, has expressed high expectations for substantial investments in sustainability and geospatial technology.

“We anticipate significant allocations towards renewable energy projects and incentives for companies embracing green technologies,” he said.

Additionally, Rai said that boosting agri-tech innovations, providing tax incentives for tech companies and investing in human capital development is imperative for driving sustainable growth.

Sanjay Kumar, Founder and CEO of Geospatial World, said that to fully leverage the power of digital twin technology, it is crucial to allocate dedicated funds to it in the Union Budget.

“This allocation will facilitate the widespread adoption of digital twins, driving efficiency gains, cost savings, and improved decision-making in infrastructure projects. By investing in this technology, India can achieve significant long-term benefits, such as enhanced asset management, reduced downtime, and increased resilience to environmental challenges,” Kumar said.

Ms Sitharaman was given charge of the finance portfolio in the second stint of the Modi government after the 2019 general elections, becoming the first full-time woman finance minister in independent India.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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People Above 65 Can Also Buy Health Insurance Now

admin — Sat, 20 Apr 2024 19:31:42 +0000

Earlier, people were restricted to purchasing new insurance policies only until 65. (Representational)

New Delhi:

The Insurance Regulatory and Development Authority of India (IRDAI) has removed the age cap on buying health insurance policies, effective from April 1, 2024.

Earlier, individuals were restricted to purchasing new insurance policies only until the age of 65. However, after the recent changes that have come into effect from April 01, 2024, anyone, regardless of age, is eligible to purchase a new health insurance.

“Insurers shall ensure that they offer health insurance products to cater to all age groups. Insurers may design products specifically for senior citizens, students, children, maternity, and any other group as specified by the Competent Authority” said a notification issued by the IRDAI.

The move by the insurance regulatory body aims to create a more inclusive healthcare ecosystem in India and to encourage insurance provider companies to diversify their product offerings.

IRDAI has also instructed health insurance providers to introduce tailored policies for specific demographics, such as senior citizens, and establish dedicated channels for handling their claims and grievances.

“It’s a welcome change since it now opens Avenue for people above 65 to seek health cover. Insurers based on their Board approved Underwriting guidelines can cover people above 65. The coverage is subject to offer and acceptance between the Insured and Insurer based on affordability for the senior citizens and viability for Insurers.” said an Industry Expert.

After the recent notification, the insurers are now also prohibited from refusing to issue policies to individuals with severe medical conditions like cancer, heart or renal failure, and AIDS.

According to the notification, IRDAI has decreased the health insurance waiting period from 48 months to 36 months. According to the insurance regulator, all pre-existing conditions should be covered after 36 months, regardless of whether the policyholder disclosed them initially or not. Put simply, health insurers are prohibited from rejecting claims based on pre-existing conditions after these 36 months.

The insurance companies are barred from introducing indemnity-based health policies, which compensate for hospital expenses. Instead, they are only permitted to provide benefit-based policies, offering fixed costs upon the occurrence of a covered disease.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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