GST relief on health insurance will widen coverage, says NIC CMD
National Insurance Company CMD Rajeswari Singh Muni has said that exempting health insurance premiums from GST could significantly boost retail uptake. A price reduction would encourage both new customers and existing policyholders to opt for higher cover.
Currently, health insurance attracts 18% GST. Singh Muni noted that health insurance already accounts for 41% of India’s non-life insurance premiums, covering about 55 crore people. However, 40 crore Indians still remain uncovered, forming the “missing middle” not served by either Ayushman Bharat or paid insurance plans.
She stressed that the post-Covid period has heightened awareness about health risks, but affordability remains a barrier.
At NIC, pricing factors include age, demographics, and rising healthcare costs. Singh Muni clarified that removing GST will not raise premiums immediately, but will instead make insurance more accessible. Nearly half of NIC’s portfolio is already in the health segment.
Star Health faces hospital backlash, risk of cashless service suspension
Star Health & Allied Insurance may lose its cashless service network after AHPI, representing 15,000 hospitals, accused it of unfair practices and issued a deadline of September 22 to resolve issues.
The hospitals allege Star Health enforces outdated tariffs, arbitrarily denies approvals, and rejects claims post-approval. The company has been warned that failure to address these complaints could lead to a suspension of cashless services, forcing policyholders to switch to reimbursement mode.
Star Health rejected the accusations as vague and said tariff negotiations are standard. The insurer assured customers that services would not be impacted and highlighted its two-decade-long partnerships with over 14,000 hospitals.
The Insurance Ombudsman’s 2023–24 report noted over 13,000 complaints against Star Health—more than all other top insurers combined.
In August, other insurers like Bajaj Allianz and Care Health also faced similar warnings.
Galaxy Health and Round Table India partner to expand rural health cover
Galaxy Health Insurance has partnered with Round Table India (RTI) to expand insurance access to underserved rural and semi-urban populations. RTI is active in 135 cities and has a strong network in education, health, and infrastructure development.
The collaboration will focus on reaching India’s “missing middle”—people not covered under Ayushman Bharat or private insurance—by combining Galaxy’s product innovation with RTI’s grassroots reach.
G Srinivasan, MD & CEO of Galaxy Health, said the partnership aligns with the mission of ‘Insurance for All by 2047’.
Galaxy aims to close the protection gap by offering affordable, innovative health insurance tailored for rural populations. RTI’s on-ground presence will help deepen awareness and boost penetration in hard-to-reach areas.
This initiative adds momentum to the broader industry push for inclusion and awareness in India’s rapidly growing but still underinsured healthcare landscape.
Release bodies in 5 hours: West Bengal health panel to hospitals
The West Bengal Clinical Establishment Regulatory Commission has ruled that hospitals cannot withhold a deceased patient’s body for more than five hours over unpaid bills or pending insurance claims.
Hospitals must document reasons for any delay and inform the commission. Non-compliance will lead to penalties.
While the ruling is seen as humane, hospital administrators expressed concern that families may exploit it, leaving hospitals without means to recover dues.
The directive followed a complaint from Mudasi Parvez, who said CMRI hospital delayed releasing his 74-year-old relative’s body by 15 hours due to insurance clearance issues.
Justice (retd) Ashim Kumar Banerjee, who heads the commission, stated that care and compassion must be prioritised over financial disputes.
Hospitals are now seeking mechanisms to ensure pending bills can still be recovered while complying with the five-hour rule, especially in cases involving third-party administrators (TPAs) and insurance settlements.
Senior citizens increasingly port health insurance for better benefits
Health insurance portability among senior citizens has nearly doubled in two years, driven by new product innovations and rising awareness.
Data from PolicyBazaar reveals that portability in the 60+ segment rose to 29% of total policies in 2024–25, up from 18% in 2022–23. Seniors are switching insurers to access better claim support, wider coverage, and to counter premium hikes.
Ankur Kharbanda of Niva Bupa attributed this trend to IRDAI’s “use and file” rule, which encourages product innovation. He said newer plans tend to outperform older ones, prompting customers to explore better options.
While the trend is rising, insurers are not alarmed. Some firms attract new customers through innovation, while others retain clients by upgrading existing offerings.
The growing interest in portability signals a maturing insurance market, especially among older policyholders seeking value and flexibility.
Doctors allege cartelisation by insurers, urge IRDAI to intervene
The Delhi Medical Association Nursing Home Forum (DMA NHF), representing 20,000 doctors and over 1,100 healthcare facilities, has accused private insurers of cartel-like behaviour.
In a submission to IRDAI, they alleged that insurers—acting through the General Insurance Council (GIC)—are collectively dictating tariffs using an illegal “common empanelment” model. They claim this suppresses fair negotiations and undermines hospitals.
While the forum has not called for suspension of cashless services to avoid harming patients, it urged IRDAI to investigate the alleged abuse of dominance, enforce inflation-linked tariffs, and involve the SFIO for deeper scrutiny.
DMA NHF seeks a multi-stakeholder meeting to restore fair practices and protect patient rights.
Insurance sources counter that this is an attempt to derail common empanelment, adding there’s no healthcare regulator to address overpriced hospital bills from the insurers’ side.
Devi Shetty: India will prove healthcare is not just for the rich
Dr. Devi Shetty, Chairman of Narayana Health, believes India will pioneer affordable, high-quality healthcare for all, irrespective of income.
With digital platforms, AI tools, and government-backed insurance, he predicts India will break the global norm of wealth-based healthcare within 5–10 years.
Narayana Health’s tech arm Athma has launched AIRA for clinical data tracking, Aadi as a doctor’s mobile assistant, and Namah for nursing workflows. Shetty says these platforms will be free or low-cost globally.
The hospital group has also entered insurance with ADITI (surgery cover up to Rs. 1 crore) and Arya (for medical gaps), becoming a full-stack healthcare provider.
Shetty noted that hospitals entering insurance shift focus from illness-based revenue to wellness promotion. “If people stay healthy, insurers save money—aligning the goals of providers and customers,” he said.
This integration of care, tech, and insurance reflects Narayana’s mission to democratise health access worldwide.
