“Health insurance has become a basic necessity today whether one is self- employed or a salaried
person. It is a critical component in mitigating rising healthcare costs while accessing quality
health care treatments for individuals and families. Senior citizens constitute approximately 9% of
our population, and with a higher life expectancy, access to health insurance protection is crucial.
However, penetration of health insurance continues to be very low in our country. More than 50%
of healthcare expenses are met out of pocket. Given importance of health insurance in
safeguarding families and senior citizens against increasing hospitalization costs and alleviating
financial strains, in light of these circumstances the insurance industry would urge the government
to consider a reduction in existing 18% GST rate on retail health insurance products. This
reduction in GST rate would not only enhance affordability of health insurance for the general
public but also contribute to increasing insurance penetration and accessibility, particularly in
tier-II, tier-III cities, and rural markets. “
