Big reforms in the health insurance sector are likely in the upcoming Union Budget, according to policybazaar.com. Some benefits are also expected in pension products and we get an expert opinion on possible GST relief on health insurance to MSMEs. Watch the current episode for all updates on insurance sector expectations
#UnionBudget2024
#HealthInsurance
#InsuranceReforms
#PolicyBazaar
#PensionBenefits
#GSTRelief
#MSMEs
#FinanceNews
#BudgetExpectations
#ExpertOpinion
~HT.178~PR.274~GR.124~ED.102~
#UnionBudget2024
#HealthInsurance
#InsuranceReforms
#PolicyBazaar
#PensionBenefits
#GSTRelief
#MSMEs
#FinanceNews
#BudgetExpectations
#ExpertOpinion
~HT.178~PR.274~GR.124~ED.102~
Category
🗞
NewsTranscript
00:00Hello and welcome. We are here to talk about expectations from the budget and we have with us today Sameep Singh from policybazaar.com
00:08Hello Sameep. Hi Siddhi. Hi, very nice to be here. Very nice to meet you, too
00:13There is so much going on about you know
00:15What what what the budget will be like and what our finance minister Nirmala Sitharaman will speak
00:23before I
00:24Dig deeper into the insurance industry. Let me just quickly ask you. What is your overall expectations from the budget?
00:34See, I think I think my my personal expectation would be it will be a slightly more populous budget something for the middle class
00:41You know and for the taxpayers because I think
00:45If they have not, you know, they've not been catered to for some time. So I think something around that would really really help
00:52Right and the insurance industry is expecting pivotal reforms from the union budget
01:01which will
01:02Probably boost the sector's growth. What is your view on that?
01:08See the insurance penetration in the country obviously needs to be improved in that direction
01:14I think what what people are specifically looking for is I think the ATC and the ATD limits the under section ATC
01:21You know, you can save up to 1.5 lakhs from your salary every year that has not been revised sometime
01:27So I think that needs a relook so more money
01:30you know can be saved and and that will obviously help in future growth and
01:34Obviously ATD that that is related to health insurance where currently the limit is self
01:40It is 25,000 rupees a year and for it for your parents people above 60
01:44That is that is around 50,000 per year that also has not been revised for quite some time and you know with increasing inflation health
01:50Insurance is becoming more and more expensive. So people want to buy higher cover. I think currently
01:57People want to take more and more cover because recently Covid also happened. So the awareness is also increased. So if the
02:03deductible in that use that if that can be increased under ATD that would really help maybe up to 50,000 for self and
02:10For people above 60 if you can go up to 1 lakh rupees that will be absolutely a game-changer
02:15Right, right, I want to you know talk about key expectations
02:21about the pension products, but just before that you mentioned about
02:25ATC and ATD
02:28Is it necessary you feel to expand section ATC?
02:32deductions and add a dedicated category for term insurance
02:37See ma'am the purest form of life insurance is in fact term insurance, right?
02:42And term insurance is is is you know a necessity for all and and a good term insurance
02:48For one CR cover you can easily get it for five six hundred rupees a month now now
02:54on that 80% GST
02:57that's like
02:58That's like that. That's like one one big dampener and then also not having a separate category to promote it
03:03That's the second dampener on it. So so basically if we can have a separate section like like health
03:10ATD something says like that up to up to 50,000 rupees or maybe slightly lesser also because it's slightly cheaper that is also
03:17definitely promote
03:18term insurance and
03:21that will also help increase increase penetration because I in fact, I truly believe that
03:26To take care of you know, people have dependence in in society in India specifically to cater to them
03:32Having term insurance is very very important. So increase, you know increasing that as a separate section would definitely
03:39You don't take increase the how should I put it increase the acceptance for that, right?
03:46interesting
03:47Let's talk about pension products. There's a huge traction huge, you know
03:53Curiosity about pension products. So
03:57What is the key expectations that you know, there should be tax benefits given to pension products as NPS
04:06What what is the expectations among people and what do you expect so see pension is a necessity now
04:13And people are longer and longer so they have the fear of living too long, right?
04:18That is one fear that that they have right and since better better health insurance is coming in so they live too long, right?
04:24So they need income post retirement now to cater to that. Obviously you need to have
04:30Something to you know say for for the future and some some the government also needs to take some steps to promote that
04:35So currently there is under NPS you can get you know
04:38An additional 50,000 rupees under 80 CCD 1b section if something similar can be can be done around the annuity products
04:45where you say start saving today and
04:47Get a pension once you retire a similar section or you know
04:51Make it a part of that only that would really help people start saving for the future
04:55Also one more point I would like to add from my side also is that currently government employees they can you know up to 14%
05:03Of their basic can be a deductible
05:05For NPS if if what if a private employees also that can also be taken up to 14% currently
05:10It's 10% so that will also help promote
05:15Saving for the future and saving for your retirement. These are the two key points
05:18I would I would like to mention right right and I think everybody is very keen to know that you know
05:24What kind of benefits we can get?
05:27Through pension products because you know, once your work life is over. That is
05:32All you have your pension to survive
05:37Let's talk about MSMEs any relief that you expect in the sector
05:43See MSMEs
05:44So they take a lot of group health insurance
05:48Now now is a key factor to retain talent again with covid just passing three four years back
05:53Everybody takes looks at personal health insurance as well as group health insurance when they when they take up jobs, right?
05:59And MSME sector
06:01Even if they pay for the health of group health insurance, they do not get GST input tax credit on that
06:06So so that is one big an additional burden you pay the premiums
06:11You pay the GST on that and you don't get that input tax credit for that
06:14So if that can be allowed and they can claim input tax credit for the group health insurance premium the GST that they are paid
06:21on that that would really help
06:23you know increase group health insurance coverage for employees because it will be a
06:28A good step a positive step towards, you know, increasing increasing health insurance penetration and a step towards retaining talent
06:36Also, if you offer great health insurance coverage
06:38That can also be a retention retention bonus for for employees
06:42Because you know, they if they go out they might lose out on such a great health insurance benefits
06:48Those are some very interesting views of summit. What is your vision for the health industry for the next five years?
06:56See health insurance
06:58what what what the vision is basically what we at policy but at least are trying to do is promote taking more and more
07:06Health cover because see with it in health inflation at an extremely high levels
07:12Regular inflation is at six seven percent health inflation is an even higher nine ten percent. So health care is getting more expensive
07:18So obviously you need a larger health cover just five lakhs of health cover would not suffice for the future
07:25So here at policy bizarre
07:27We are trying to sell even higher health health covers maybe 50 lakhs one crore and and these are very very affordable
07:33So that is something that we want to promote
07:36to further promote
07:38My ask from the budget would be that you know
07:40If you further promote that if we can reduce GST on that see because if you take a larger health cover
07:45Obviously the premium would slightly go up and then paying up 18% GST on that is a bit of a dampener, right?
07:51so to promote that maybe if the government can reduce the
07:55GST burden from on that from 18% to maybe 5% or if you know
07:59if possible just go away with it that that will be a great initiative to promote some insurance penetration and
08:05You know secure India's future from a health insurance perspective
08:09right
08:11If you ask me now
08:13India will probably still remain the fastest growing economy with growth rate of 7% even IMF
08:20Past week I think has increased from 6.8 to 7%
08:24Inflation is more or less controlled if you compared with you know, the other developed countries
08:29there are
08:31Policies that's being changed that's being upgraded
08:34several new policies
08:37Government schemes are probably will probably be announced in the budget
08:42Overall if I had to see if I have to ask that what is your expectations?
08:48That where will India be Indian economy be in the next five years, what would you say?
08:55See India India is the one of the fastest growing is the fastest growing economy in the world currently and India is the place to
09:01be I think
09:03We what my expectation personally from the budget and on India's growth story is that we will grow very fast
09:11I think the next five six years
09:12We seven to eight percent growth every year year on year would really propel
09:18The GDP also and and the sensex and the equity markets in proportion with that
09:22so in you know, India is the place to invest and
09:27The the sensex and the equity markets are are where you should be
09:30So because see if the GDP grows at seven eight percent the sensex generally in conjunction growth with honest
09:37I a slightly higher weight than that. Generally it is like seven eight percent GDP growth plus four five percent inflation
09:42So it's in sectionally quoted by 13%
09:45so if that continues India will become one of the leading economies in the world and
09:51Developed economy, hopefully very soon and that is what what we dream to be
09:57We are almost there
10:00So, thank you so much Sammy for being here
10:04And let's keep a close watch on what's going to happen in the budget
10:08Thank you so much for joining that was Sameep Singh viewers from policybazaar.com. Thank you for watching
10:18Don't miss out follow one India for real-time updates