The Parliamentary Panel on Finance has recommended reducing the Goods and Services Tax (GST) on health insurance products for senior citizens and microinsurance products below 18 per cent to make it more affordable.
“The Committee feels that there is a need to rationalise the GST rate on insurance products, especially health and term insurance, which is 18 per cent at present. The high rate of GST results in a high premium burden, which acts as a deterrent to getting insurance policies,” the panel said in its report on ‘Performance review and regulation of insurance sector’.
The committee decided to make insurance more affordable, GST rates applicable to health insurance products, particularly retail policies for senior citizens and microinsurance policies and term policies may be reduced.
Ayushman Bharat The report found the Ayushman Bharat Scheme as a highly successful initiative of the government to provide much-needed health insurance coverage to low-income families.
It was suggested to strengthen the scheme by making it possible for the Missing Middle to participate on a paid basis, which would close a major insurance gap.
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