Insurance Plans Benefits Pro Union Budget
Tuesday, March 2nd, 2010
A mediclaim policyholder pays service tax at the time when they buy the policy. They also pay service tax while paying the renewal premium each year.
But at the Union Budget 2010, finance minister Pranab Mukherjee has proposed to levy service tax on payments for the treatment or health check-up of a medical insurance policyholder if it is made directly to the hospital or multi-speciality clinic by the insurer.
Though, there is couple of good news, such as, the premium for your unit-linked life insurance plan may come down in the next financial year.
The Finance Bill 2010-11 clarifies that for the purpose of levying service tax: “The gross amount charged by the insurer shall be equal to the maximum amount fixed by the IRDA as fund management charges for Ulip or the actual amount charged for the said purpose by the insurer, whichever is higher.”
General insurance companies pay upwards of Rs 6,000 crore each year to healthcare service providers such as hospitals, nursing homes and medical clinics as settlement of claims under the cashless facility provided to medical insurance policyholders.
However, the people who has opted for the reimbursement facility (where policyholders pay the cost of treatment out of their pockets and then claim reimbursements from insurers), they really don’t need to worry. The premium for the reimbursement policy cost will remain unchanged.
Now, if you want to understand the nuances of different types of policies and its price, feel free to seek the help of InsuranceMall to select the right products based on your need.
InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy.
