A Comparative Study of the Effect of Gst Exemption on Health Insurance Penetration and Financial Inclusion in India

Abstract

The main purpose of this research is to study the impact of GST Exemption on Health Insurance Penetration and Financial Inclusion in India and determining the influence of GST on Individual health insurance premium. The methodology adopted for collecting Primary data would be by way of interviewing Individuals aged 18-65 whereas secondary data would be obtained from IRDAI reports, GST council documents and premium charts of leading insurers. The target areas would majorly be tier I and tier II cities where Individuals are having health insurance policies. Also, some samples from tier III and remote cities would also be considered to determine the impact post exemption of GST, as affordability is a major factor when buying health Insurance in India is concerned. Further, in India, many companies provide for health insurance policy as a perquisite to the employees which extend to the dependent family members as well, but on many occasions the amount of Sum insured doesn’t suffice the requirement. Thus, this study would also target the Individuals to whom Insurance policy is provided by their employer but also intend to buy one of their own and the affordability of the same. To understand the perspective of policy makers in exempting GST on Individual health insurance premiums. Whether this is the correct way to achieve the national mission “Insurance for all by 2047” set by the Insurance Regulatory and Development Authority of India (IRDAI). Impact on subscription of Individual health insurance premiums post exemption of GST.