Health Insurance Deduction Limit To Be Increased From 15K To 25K Announced In Budget 2015

The financial minister Arun Jaitley announced an increase in the deduction for health insurance premium from Rs.15,000 to Rs.25,000 per annum. The limit for senior and very senior citizens (over 80 years age) has been increased from Rs.20,000 to Rs.30,000. Very senior citizens will also receive an additional benefit of Rs.30,000 as a deduction for medical treatments.

Read More

Policybazaar exclusive benefits
  • 30 minutes claim support*
  • 50,000 claims approved in last 15 months*
  • Schedule home visit with our advisors
  • Get a plan based on your medical needs

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Back
All health plans cover Covid-19 treatment
  • 1
  • 2
  • 3
  • 4

Who would you like to insure?

  • Previous step
    Continue
    By clicking on “CONTINUE”, you agree to our Privacy Policy and Terms of use
    Previous step
    Continue

      Popular Cities

      Previous step
      Continue
      Previous step
      Continue

      Do you have an existing illness or medical history?

      This helps us find plans that cover your condition and avoid claim rejection

      Get updates on WhatsApp

      What is your existing illness?

      Select all that apply

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step

      The increment in the health insurance tax deduction is done to encourage people buy health insurance. The government’s vision is to create a social security umbrella for all Indian citizens.

      Indian is spending around Rs.4000,000 crores annually on health where the commercial health insurance is only Rs.20,000crore. As a result, India is paying out of the pocket which is the most inefficient form of health financing as shown by some analysis.

      The average health insurance cover size is 2-3 lakhs sum insured at the current situation and the average premium paid in the cities are around Rs.8000. The medical inflation is, above all, the other inflations, and the size could grow in the future.

      The representative of Apollo Munich Health Insurance said “The tax exemption limit on the health insurance would go a long way in motivating the people to consider higher sum insured policies to confront the increasing medical cost. This would address the need for a good package,”

      The Finance Minister also announced the choices between an ESI plan and any other health plan recognized by IRDA.

      (Source: This article has been adapted from the article "Budget 2015: Increase in health insurance deduction limit Rs 15K to Rs 25K announced" that appeared on Feb 28, 2015  in economictimes.indiatimes.com.)

      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Health insurance articles

      Recent Articles
      Popular Articles
      Monkeypox: Dos and Don’ts of the Disease That You Should Know

      15 Sep 2022

      Monkeypox has slowly and steadily spread to more than 85 countries...
      Read more
      Why is It Important to Disclose Pre-existing Diseases to Your Insurer?

      06 Sep 2022

      As we grow old, the chances of developing a disease or a medical...
      Read more
      Benefits of Multi-Year Health Insurance Plans

      25 Aug 2022

      Ever since COVID-19 entered our lives, health insurance has come...
      Read more
      Does Health Insurance Cover Monkeypox?

      25 Jul 2022

      Monkeypox is the latest disease to make its way to India while we...
      Read more
      List of Diseases Covered by Bajaj Allianz Health Insurance Plans

      05 Jul 2022

      Barely any person has remained unaffected due to rising health...
      Read more
      PMJAY Scheme: Ayushman Bharat Yojana Eligibility & Registration Online
      Prime Minister Shri Narendra Modi announced the launch of (PMJAY) Ayushman Bharat Yojana in his Independence...
      Read more
      Best Health Insurance Plans in India 2022
      Finding the best health insurance plan from so many different health insurance companies can get confusing for many...
      Read more
      How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)?
      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal...
      Read more
      Best Maternity Insurance Plans
      Maternity insurance offers comprehensive coverage for medical expenses incurred during pregnancy, including the cost...
      Read more
      Best Health Insurance Plans for Senior Citizens in 2022
      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance...
      Read more

      top
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL