The landscape of the insurance industry in the country is set to transform. The potential for GST relief on health and life insurance, the upcoming launch of the Bima Sugam portal in a few months, and the initiation of the Bima Sakhi scheme on Monday are anticipated to cause significant transformations in the insurance industry. As a result of this change, in the upcoming year, it will become simpler to obtain insurance and receive claim payments.
In India, 55 lakh people individuals are provided health insurance coverage
In addition to this, numerous insurance products at significantly lower prices will emerge in the market, making the acquisition of health and life insurance more affordable than it was previously. Insurance providers will also be observed broadening the reach of the insurance industry from one village to another. In India, 55 crore individuals have health insurance, yet the count of personal health insurance policyholders is under three crore.
Whether institutional or personal, health insurance is not provided in any manner. Over 85 percent of individuals lack property insurance, and over 95 percent do not possess any coverage to guard against disasters. Among 100 individuals, merely three to four possess life insurance.
Health and life insurance premiums expected to see a reduction in GST rates
Experts in the insurance industry indicate that due to various factors such as insufficient transparency regarding insurance, delays in receiving benefits when necessary, or apprehension about the cost of insurance products, the general public is not drawn to insurance. The GST Council is likely to reduce GST rates on health and life insurance premiums during the meeting scheduled in Jaisalmer on December 21. Presently, a GST of 18 percent is applied to these.
