Impact of GST Rationalisation on High-Value Health Insurance Policies
GST Rationalisation impact: Share of high-value health policies doubles
Business Standard
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The share of high-value health insurance policies in India, with coverage from ₹20 lakh (approximately $24,000 USD) to over ₹1 crore (approximately $120,000 USD), has more than doubled in the past eight months. This surge follows the government's reduction of the goods and services tax (GST) on individual policies from 18% to 0%, making healthcare more affordable.
- 01High-value health insurance policies have seen a significant increase in share.
- 02The GST on individual health policies was reduced from 18% to 0%.
- 03This change has made healthcare more affordable for consumers.
- 04The increase in policy share reflects rising medical costs.
- 05Industry experts support the positive impact of GST rationalisation.
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In the last eight months, the share of high-value health insurance policies in India, covering sums from ₹20 lakh (approximately $24,000 USD) to over ₹1 crore (approximately $120,000 USD), has more than doubled. This significant increase follows the Indian government's decision to rationalise the goods and services tax (GST) on individual health policies, reducing the rate from 18% to 0%. Industry experts indicate that this move has enhanced affordability for consumers, particularly in light of rising medical costs. The growth in high-value policies suggests a shift in consumer behavior as individuals seek more comprehensive coverage to manage healthcare expenses.
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The reduction in GST has made high-value health insurance policies more accessible, allowing more individuals to obtain comprehensive health coverage amidst rising medical expenses.
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