Insurance firms eye tax reliefs in upcoming Budget to boost penetration

Indian insurance companies are seeking several tax exemptions in the upcoming Union Budget to boost the appeal and affordability of insurance products and increase nationwide penetration. Life insurers are advocating for tax deductions on annuities, a reduction in GST on insurance products, and inclusion of life insurance in the new tax regime, which currently offers no exemptions under Section 80C. Non-life insurers are pushing for a GST rate cut from 18% to 5% on health insurance to bridge the protection gap and align with the regulator’s 2047 vision. Additionally, they propose raising tax deduction limits under Section 80D for health insurance premiums and expenses, aiming for better implementation and increased participation from hospitals.