What Budget 2017 can do to enable people to make full use of insurance

As the finance ministry begins drafting the coming Budget 2017, ET Wealth requested financial sector experts for their suggestions on what changes they would like to see proposed in the Finance Bill 2017. Here are some ideas from experts on what changes in the budget could make it easier for the common man to buy and use insurance fully.

V Jagannathan, CMD, Star Health Insurance

Enable grading of hospitals and fix charges for various medical procedures

Access to health is a basic need. Unfortunately, most in this country are unable to afford quality medical treatment. Keeping this in mind, the government should enable grading of hospitals and fix package charges for various procedures, which will help the public at large opt for a treatment of choice. Also, the deduction limit for health insu ..

Bhargav Dasgupta Managing Director, ICICI Lombard

Increase deduction limit for medical insurance

The penetration of non-life insurance in India continues to be very low at 0.7% of the GDP. Despite the country witnessing diverse incidents (disease outbreaks, road accidents and natural calamities), a sizeable portion of the population remains out of the purview of any form of non-life insurance. The Budget needs to fix this. The current tax deduction limit for  ..

Mimi Parthasarathy, MD, Sinhasi Consultants

No service tax or GST on term plans, health cover

At present, 15% service tax is levied on premiums for both health and life insurance. The GST on insurance premiums is expected to be in the range of 18-24%, which is very high. The government should remove service tax or GST on term plans and health insurance. These are not investment products but are taken by individuals to cover the risk of death and medication. T ..

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