Budget 2023 expectations | Reduce GST on insurance premiums to make it more affordable, say experts

As we draw closer to the Budget 2023, the insurance policyholders are expecting a reduction in insurance premiums and an increased affordability of policies, especially in the medical cover segment.

The  It is one of the critical challenges that our industry faces in making insurance products more affordable and accessible to a wider range of people. One way to address this issue could be by reducing the Goods and Services Tax (GST) on these products, experts say.

"Rising medical inflation has resulted in many insurers increasing the premium on health insurance products this year. To reduce the premium cost and make health insurance purchase more affordable for policy buyers, insurers have been requesting the government to reduce the current 18 percent GST rate from health insurance products," said Krishnan Ramachandran, MD and CEO at Niva Bupa Health Insurance.