The Hindu Business Line : Health insurance sector receives a boost

Advertisement

Mumbai Feb. 28 The health insurance sector has received a boost from the Union Budget. The tax deduction limit with respect to medical insurance premium under Section 80 D has now been increased from Rs 10,000 to Rs 15,000 and for senior citizens it has been enhanced from Rs 15,000 to Rs 20,000.

According to analysts, the size of the health insurance market is estimated to be around Rs 2,100 crore and the incentive will improve sales.

"The enhancement of the limit will boost health insurance especially plans such as critical illness, where the average premium size is higher than the normal hospital reimbursement scheme. We think the consumers would take this benefit and go for higher sum insured and coverage to take care of healthcare inflation," said Mr S. Sreenivasan, CFO, Bajaj Allianz General Insurance.

"This will encourage more people to buy health insurance, safeguarding their future in times of need and also improve market penetration," added Mr Antony Jacob, MD, Royal Sundaram Alliance Insurance.

Tailor-made schemes

Senior citizens can also look forward to more products with the Finance Minister asking public sector non-life insurance schemes to introduce tailor-made health insurance schemes. The National Insurance Company had launched an exclusive health cover for senior citizens in December 2006 and the other insurers are likely to launch similar covers.

Key amendments like the hike in Foreign Direct Investment to 49 per cent will, however, only come with the passing of the comprehensive bill on insurance. Mr Ajit Narain, MD and CEO, IFFCO Tokio General Insurance Co Ltd, said, "We look forward to the comprehensive bill to amend insurance laws which is to be introduced in the budget session."

For life insurers, the Budget was a dampener, as there were no major announcements.

"We are disappointed that the Government has not taken the opportunity to announce much-needed reforms required for the growth and development of the insurance sector. However, as announced by the Finance Minister, we look forward to a comprehensive Bill to amend insurance laws to be introduced in the budget session," said Mr Bert Paterson, Managing Director, Aviva Life Insurance.

More Stories on : Budget | General Insurance | Health

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reverse mortgage of property to help senior citizens

Debt management office to be set up

Rule soon for housing mortgage guarantee cos

Chidambaram dwells on making Mumbai a global financial hub

Home loan of Rs 20,000 for the poor at 4%

Housing finance cos may gain from reverse mortgage

Health insurance sector receives a boost

Putting forex reserves to good use

Rupee weakens

Bond prices tumble

Banks, FIs agree to settlement with Trayons

`Net govt borrowing to be higher'

Call rates steady

Airlines' efforts to check online frauds