My open letter
Given below are some of my thoughts put down as suggestions in response to reports that further increase in medi claim premiums are being contemplated. If liked please write in similar lines with any add on suggestions to various authorities and newspapaers so that suggestions gets attention of the Government. With budget preparations on this is the right time.
The Government through IRDA may or by itself take steps to protect the interest of the clients in general and elders in particular from increase in medical insurance premiums. The IRDA must ask insurers to
1. For fixing rate of premiums elders(above 60) should not be grouped separately but all age should be in one group( or two at the maximum)so that automatically cross subsidising happens among age groups. Long standing customers may also be given discount in premium instead of present cumulative Bonus in sum insured. There can be common pool for medi-claim policies of elders which private players shun away and PSUs also discourage following private players.
2. As health of individual is important for health of the Nation and through insurance policies the policy holders save Govt funds also by self reliance, the Government should do away with service tax on medical claim policies.
3. Insurance companies should be given deduction from income for medi-claim premia collected especially from elders so that they can keep the premium at low levels.
4.The section 80.D deduction for premium paid should be without limit rather it should be for more than 100 % to encourage medi-claim insurance polcies among public.
5.Few years back the Government was good to extend 80 D deduction to premium paid on not dependent parents also. Government may kindly allow deduction from income even for premium paid to policies on other relatives whom one may have to take care, for instance brohers, sisters, grand parents or grand children or any such ascendants and descendants including family side of spouse.
6.The Government also extend such deduction to premium paid for medical insurance polices on personal assistants like Gardener, domestic help, drivers or similar employees of an individual or his/her family and this move will be involving people in welfare of unorganised labour.
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