I think you have heard about a famous word problem saying, “Mr Pankaj took a health insurance policy for his family and paid Rs. 900 as SGST. Find the total annual premium paid by him for this policy, rate of GST being 18%”. Let’s see first what a health insurance policy is.
What is a Premium Health Policy?
We can define the health insurance policy as a specific kind of insurance. Here the company agrees to compensate the people purchasing the policy to pay the medical and surgical expenses incurred during the policy tenure. It is applicable when the insured gets sick or has an accident ending up in the hospitalization of the insured. And to get all these benefits of the health insurance policy, the policyholder has to pay a specific amount periodically, known as a premium.
Understand Word Problem: Mr Pankaj took health insurance
It is actually to calculate their premium bill GST. So let us see how it is solved step by step:
Here, we will first find the percentage rate for GST from SGST. After this, using the given data we will find the amount of the policy and the total annual premium from it using the given data.
First of all, you have to assume that the given SGST is ₹ = 900
Given that GST =18%
Now to calculate the GST percentage, we will follow the below steps:
SGST= GST %/2 = 18%/2= 9%
So now we see that SGST is 900 and the GST percentage is 9%. The premium value is still unknown. And its 9 percent would be equal to 900. Like this:
Let the policy premium be 2x.
X of 9%= 900
9x/100 = 900
Solution of Word problem: Mr Pankaj took health insurance
Here we see that:
It takes out 10,000. So here you are, done with the calculation of premium GST.
What is the scope of Health Insurance Policies in India?
As we see the popularity of the word problem, “Mr Pankaj took a health insurance policy for his family and paid Rs. 900 as SGST. Find the total annual premium paid by him for this policy, rate of GST being 18%”: It is evident that Indian people are pretty keen to have an insurance policy for their health. The data shows that the Health insurance industry is a growing sector in India, and it makes up around 29% of total general insurance premium income gathered in India.
Many people wish to have a health insurance policy in India as different companies offer insurance policies such as;
- Bharti AXA Smart Super Health Plan
- Aditya Birla Active Assure Diamond Plan
- Care Health
- Niva Bupa
- Star Health
- Bajaj Allianz Health-Guard
So it’s no wonder if we come across the massive popularity of the word problem about Mr. Pankaj taking or buying a premium health insurance policy for the family. During the pandemic Covid-19, the importance of purchasing a health insurance policy has increased dramatically.