Health insurance premium of up to Rs 20,000 made tax-exempt

KATHMANDU, July 23:

The government has made health insurance premium of up to Rs 20,000 tax-exampt.

The provision has been included in the Financial Bill 2015 which has been tabled in the parliament.

The decision is likely to increase sale of health insurance policy. Suraj Rajbahak, deputy manager of Shikhar Insurance, said he was hopeful that number of people buying health insurance policy will increase.

Shikhar Insurance has been selling health insurance policies worth Rs 20 million annually.

Insurance policies and premium vary according to companies. Policy buyers can get health services at different hospitals. Insurance companies have also tied up with Indian hospital.

Shikhar Insurance has been selling policies worth Rs 200,000 to Rs 1 million.

At present, individuals have to pay tax for income above Rs 250,000 and families above Rs 300,000.

Pawan Thapa, senior manager of Siddharth Insurance, said they recently launched health insurance scheme which covers treatment cost of up to Rs 500,000. Thapa also said that they have tied up with a number of hospitals for providing health services to their policyholders even without paying bill in advance.

Rajbahak expects negligible rise in the number of policy buyers as it may take time for general people to know about the benefits of this policy.

Likewise, government also has scrapped taxes on payment of insurance policies including compensation paid to family of deceased person.

Source: Republica