Recently, many of the industries were coming up to demand more and more benefits from the government. Also, the upcoming general elections 2019 is the reason why sectors are emerging to take their share of benefits.
In this league, the medical industry is pushing for some changes in the taxation while also asking for some amendments in the union budget allocation:
Main points that general insurers want to see in Union Budget 2019-2020.
- Increase in the health insurance exemption level
- Increase in mass insurance schemes
- Reduction in GST (Goods and Services Tax).
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Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance, told: “Providing health insurance for employees can also be made mandatory for employers”. Singhel said referring to an interim budget that if the needs are not met in the budget, it could be met from the 2 main points that were introduced-
- long-term motor insurance policy regulations
- compulsory personal accident cover of ₹15 lakh
He also added that the government associated with insurance companies to introduce a home insurance scheme which will help in covering the loss of the property which might occur due to calamities. It is also expected that for wide implementations, PMJAY (Ayushman Bharat Yojana or Pradhan Mantri Jan Arogya Yojana or National Health Protection Scheme) might get more funds.
As per Praveen Gupta, MD and CEO, Raheja QBE General Insurance Company, the tax deduction must not only be given on health insurance spend but must also be given on full treatment cost and on preventive care.
He said, “Limits, if any, should be revised in line with annual health inflation”.
As per the calculation of the industry, there was a growth of 15 to 20 percent in the annual health inflation. It is also estimated that the medical allowance limit of average household expenses of healthcare expenses will become Rs 15,000 annually if there is a growth of 14 to 16 percent in the medical inflation.
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Shreeraj Deshpande, Principal Officer and Key Managerial Personnel, Future Generali India Insurance said “Companies usually cap the medical allowances at the tax-free limit of ₹15,000. If this limit is revised upwards, companies will also be encouraged to hike the allowance”.
