SUB- GST Burden Reduction- Medical Insurance Premium.

Respected Sir,

Namaskar,

I wanted to bring to your kind notice, and request your kind support on this important issue, which affects millions of middle and lower middles class citizens of India.

Medical Insurance has become a necessity and a must have protection for the working class, thanks to ever spiralling medical cost. However it is subjected to 18% GST which makes them very expensive and puts a burden on the already slim earnings of the middle class, retirees etc.

Sir, providing free quality medical care to the citizens, is the fundamental duty of the Government. Because the state governments have failed in providing sufficient, and quality medical care to the people, the common man is forced to go to expensive private hospitals. As a consequence he is forced to buy expensive medical insurance policies to safe guard himself, in the event of an unfortunate accident or sickness.

If only quality and sufficient public medical infrastructure was developed keeping in view the rising needs, the common man would not have been forced to spend his limited money on this expensive financial instrument. Hence failure of the system in providing this basic facility has forced him/her to take recourse to medical insurance. Now to levy 18% GST on this already expensive product, which the common man is forced to buy due to state failure is an absolute unjust.

Below I am illustrating the cost of purchasing of medical insurance in India. The pricing is approximate, and this from a private insurance company.

Coverage/Ages of Couple/Two Children- Ages/Premium/GST/Final Premium

   5 lacs      41 & 36 Y      Below 17 Y       14989            2698      17687

    5 Lacs    51 & 46 Y       18-25 y            26477             4766     31243    

   5 Lacs    61 & 56 Y        NA                   46540             8377     54917  

 5 Lacs      66& 61 Y         NA                   66128             11903   78031  

 5 Lacs      71 & 66 Y          NA                  77232             13902  91134  

The above pricing gets loaded by 10% to 25% if the insured person has any pre-existing disease. Now a day’s many suffer from Diabetes and Hypertension and hence the premium charges for them is much more than what is depicted above.

The coverage of 5 laks per family is very modest and many people   take a higher coverage of 10 laks + keeping in view the high cost of treatments in the private hospitals. The ongoing COVID pandemic and its high cost of treatment has been an eye opener for many.

The burden on the senior citizens is very severe as detailed above.

Medical Insurance has now become a basic necessity for a common man, and is not a luxury product to be charged a high 18% GST. Hence request you to kindly reduce the GST burden on this essential product to 5% from the existing draconian 18% GST. Covid has badly impacted millions financially and they need urgently this support from GOI.

This reduction in GST will help in making this product more affordable and helps in increasing the Insurance penetration in India and thus reduce the burden on state.

Trust you find merit in this, and would take a positive view of the same.

Namaskar.
With Best Regards
Madhava E