The Hindu Business Line : IRDA chief calls for more tax breaks to enhance health insurance

Spent numbers
Total spend amounted to Rs 2,00,000 cr
One-third of this, Rs 70,000 cr, was on surgical interventions
Only 3% of the total spend (Rs 600 cr) was insured

Our Bureau

Hyderabad, Dec. 23 The average claim made by the insured in India is put at Rs 25,000, with an average settlement of Rs 20,000. The average hospital stay of those who availed insurance cover is four days, according to Mr J. Harinarayana, Chairman of Insurance Regulatory and Development Authority (IRDA).

Addressing a gathering after awarding the NAHB (National Accreditation Board for Hospitals and Healthcare) certification to Medwin Hospitals here on Saturday, he said though the insurance penetration was very low, the spread of the cover was reasonably good among various age groups.

Of a total spend of Rs 2,00,000 crore by people, a third (Rs 70,000 crore) was spent on surgical interventions (The remaining amount was spent on medicines and other outpatient expenditure). And only three per cent of the total spend (Rs 600 crore) was insured, he said. Compare 74 lakh insurance policies with the 100 crore-odd population, he pointed out.

Tax breaks

He said policy makers, government and insurers needed to discuss these issues and take measures to increase the penetration. He broadly divided the three categories — those depended on Government for insurance, people with a mix of Government support and their own contribution and, lastly, those who could buy the policies on their own.

The IRDA chief felt that more tax breaks were needed to increase insurance penetration in the country.

NAHB certification

Medwin has become the 20th hospital in the country and the first in Andhra Pradesh to have NAHB certification, which recognised various hygiene and administrative conformities with global standards.

Dr Ramesh Babu Byrapaneni, Managing Director, said the company would soon launch Rs 8-crore Image Guided Radiation Therapy that would enhance treating cancer tumors.

More Stories on : General Insurance | Taxation | Health | Andhra Pradesh

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