Industry Leaders Outline Insurance Reform Hopes for Budget 2025
With the Union Budget 2025 just days away, Insurtech startups and industry leaders are eagerly anticipating potential reforms that could drive significant improvements in the insurance sector. These reforms are expected to focus on increasing accessibility to insurance for underserved populations, making insurance products more affordable, and fostering innovation in insurance technology.
Yashish Dahiya, chairman and group CEO of PB Fintech, stressed the need for a holistic approach to achieving 'Insurance For All' by 2047.
"Bridging the insurance gap requires collaboration between the government, public sector, and private enterprises," Dahiya said. "Further tax relief and exemptions on health and life insurance premiums would encourage more households to prioritise financial protection and long-term savings".
He also called for a re-evaluation of the goods and services (GST) rate on insurance premiums and suggested revisiting the limits under Sections 80C and 80D to incentivise insurance adoption.
Puneet Kumar, CFO of InsuranceDekho, urged the government to address affordability challenges. "Reducing the GST on health insurance premiums and increasing the deduction limit under Section 80D to Rs 50,000 for individuals and Rs 1,00,000 for senior citizens can ensure that more families benefit from financial protection", Kumar said.