Need to abolish service tax on health insurance in India

The budget exercise of Indian Government for the year 2008-09 is on and indications are that service tax on health insurance will be abolished.

Seeing the importance of health insurance and very low penetration in India it is worthwhile for the Finance Ministry to abolish this tax on all policies whether individual,family or group. This should be done for next 10 years.

Healthy people build strong nation and this can be the support from the government towards achieving the objective.

Health Insurance Rates to go up in 2008

After reading the news item that effective Jan.1,2008 premium rates for Fire + all risks will go down further ,we have been approached by many customers located all over the country that what reduction they can expect in the premium rates for health insurance.

It is true that rates for Fire + all risks policy for low risk clients will go down but we foresee that rate for health insurance will get strengthened or we can say go up only .Reliance General Insurance had increased the rates in Dec. 2007 itself .Other Insurance co’s will have the tendency to increase the rates as and when it is possible for them. Co pay will be used as another alternative to not to increase the rates. But ultimately the client will pay for the same at the time of lodging of the claims.

Our suggestion to those who are considering buying health insurance in near future is not to wait for long but go in for issue of the policy at the earliest as the premium rates will go up.

Health Insurance Premium to go up during 2008

Many readers have read the news that with effect from Jan,1 2008 rates for Fire+all risks policy have gone down.They wish to know how much is the reduction in health insurance premium rates.

Well ther is no reduction in the rates-infact you should expect the rates to go up.During Dec ,2007 relaince general Insurance has increased the rates for health insurance