Health Insurance Expectations from Union Budget 2022

Published By: CNBC TV18 ​

Published Date: 28-01-2022

In anticipation of the Union Budget 2022, the health insurance sector has outlined several expectations to enhance accessibility and affordability for consumers. Rakesh Jain, CEO of Reliance General Insurance, emphasises the need for increased tax incentives to encourage wider adoption of health insurance policies.

He expressed his opinion on raising the tax deduction limit under Section 80D of the Income Tax Act, which currently stands at ₹25,000 for individuals below 60 years and ₹50,000 for senior citizens. An increased limit would provide greater financial relief to policyholders and motivate more individuals to invest in health insurance.​

Jain also advocates reducing the Goods and Services Tax (GST) rate on health insurance premiums from the existing 18% to a more consumer-friendly rate. Lowering the GST would make health insurance more affordable, especially for the middle-class population, thereby increasing penetration rates across the country.​

Furthermore, the sector seeks to introduce standardised health insurance products to simplify consumer choices. Standardisation would ensure a basic level of coverage across all policies, making it easier for individuals to compare and select plans that best suit their needs. This move is expected to enhance transparency and trust between insurers and policyholders.

In addition, he highlights the importance of developing digital infrastructure to streamline claim processes and improve customer experience. Investments in technology would facilitate faster claim settlements, reduce operational costs and enhance overall efficiency within the sector.​

The health insurance industry also anticipates government initiatives aimed at increasing awareness about the importance of health coverage.