Budget reaction from Mr. Antony Jacob, CEO, Apollo Munich Health Insurance

It’s heartening to note that the budget addresses the headline issues and tries to provide the required sense of direction for higher growth trajectory. We welcome Finance minister’s move to introduce the banking, insurance and pension bills. We are sure this will stimulate growth in the sector and economy as a whole.

These bills once approved may help us balance various investment and technology requirements to sustain and enhance the distribution infrastructure of insurance products.

With only 2% of the Indian population covered by health insurance, the market requires large scale focus to address the logistic challenges, create an efficient distribution network for better accessibility and improve investment opportunities in the insurance sector.

Considering the vast majority of population living below the poverty line across the country, government’s plan to increase health allocation by 20% and widen the scope of Rashtriya Swasthya Bima Yojana (RSBY) is a positive move and may bring in newer opportunities for increased insurance penetration.

However, bringing diagnostic tests in the tax net may burden those willing to opt for wellness and preventive health checks. Inclusion of Hospitals with 25 or more beds with facility of central air conditioning under service tax may bring in additional burden for the consumers opting for reimbursement claims under insurance plans and also hurt those going for medical treatment without insurance cover.

Taken on face value, the budget is pro reform and attractive for those keen to invest in India and bring in international funds.