INSUBCONTINENT EXCLUSIVE:
A way to save medical costs and income tax is to carry out the preventive check-up
In the era of rising medical cost and a greater propensity of falling prey to medical ailments, the
need to take health insurance cover has, lately, become more important than ever before
There is no denying the fact that the penetration of health insurance is abysmally low in India
And the experts attribute the reasons for this to the lack of awareness among consumers, poor services of a section of insurers, lack of
healthcare infrastructure, among others
Jyoti Punja chief customer officer of CignaTTK Health Insurance Company, says penetration of health insurance in India can be expanded by
sensitizing the consumers
"It's important to educate people on the importance of health insurance since the lack of awareness has proved to be one of the major
hurdles in penetration of insurance across the country." said Punja.Another flaw that is prevalent in the industry is being under-insured,
for instance, a 50-year individual who ideally should take a medical insurance policy offering a cover of (say) Rs 5 lakh-considering his
age and vulnerability of falling ill, ends up taking a medical insurance cover of a mere Rs 2 lakh."Even those that are covered are
under-insured and unaware about it," said Sanjay Dutta, chief, underwriting and claims, ICICI Lombard General Insurance.1
Safety net from high medical costs: The medical costs have dramatically risen of late
So, when the medical emergency strikes, consumers end up dipping into their savings, taking a toll on their future plans
Ms Punja of Cigna TTK Health says a whopping 62% of Indians burnt a hole in their pockets by paying for their own medical expenses
It highlights that Indians primarily depend on their own savings when it comes to funding health emergencies.2
Save income tax: The insurance premium not only helps prevent exorbitant medical costs, but also helps you save income tax
"Payments made towards health insurance premiums are eligible for tax deductions under section 80D of the Income Tax I(-T) Act
Individuals up to 60 years of age can claim a deduction of up to Rs 25,000 for the health insurance premium paid for themselves, or for
their spouse, children," said Mr Dutta.3
Save tax on preventive health check-ups: Another way to save medical costs and income tax is to carry out the preventive check-up
"A health insurance policy allows you to avail tax deduction for any expenses incurred for preventive health check-up, however most people
end up spending money for the check-up but miss out on claiming the tax benefits," Ms Punia informed.4
Protection from high OPD, diagnostic costs: Not only mainstream medical costs, but also the cost of OPD (out-patient department) expenses,
diagnostic tests are also on an upswing in view of high medical inflation, factors that rationalise the buying of a medical insurance policy
It is noteworthy that the medical policies not only cover the hospitalization costs but also the expenses incurred towards OPD and
diagnostic tests before and after a stipulated time period as prescribed by the policy
"Keeping in mind the high medical inflation rate, medical expenses for diagnostic tests and Out Patient Expenses (OPD), it is important for
individuals to buy a health insurance policy for themselves and their families," said Ms Punia.5
In the Budget, deduction of medical expenses for specific illnesses was also raised this year for senior citizens to Rs one lakh.
