Quick Summary
The Indian insurance sector stands at a transformative juncture as the Union Budget 2025 approaches. Experts believe targeted reforms could significantly enhance insurance penetration, driving India closer to the vision of "Insurance for All" by 2047. Here's a look at some proposed measures that cou
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FAQ :
Experts propose increasing tax deductions for health and life insurance, reducing GST on premiums, incentivising long-term policies, reforming annuity taxation, boosting foreign investment, and introducing catastrophe insurance.
Experts suggest raising the Section 80D limit for health insurance premiums to Rs 50,000 for individuals and Rs 1 lakh for seniors, and creating a separate exemption for term insurance under Section 80C.
The current 18% GST is seen as a barrier for low-income households. Reducing it to 5% could significantly lower policy costs and make insurance more accessible.
Proposals include offering additional tax deductions for policies exceeding 10 years and aligning annuity income taxation with the National Pension Scheme (NPS).
Easing FDI restrictions beyond 74% could bring capital for expansion and investment in technologies like AI and blockchain to improve efficiency and customer experience.
Catastrophe insurance protects against natural disasters, which are increasing due to climate change. Tax incentives for these policies could encourage adoption and enhance community resilience.
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