Union Budget 2025: Insurance Industry Demands GST Reduction on Health Insurance Premiums and Increased Tax Benefits
As the Union Budget 2025 approaches, the insurance sector is seeking significant reforms to boost health insurance penetration in India. With medical costs skyrocketing and insurance coverage remaining low, industry experts are calling for substantial measures to incentivize individuals to invest in health insurance policies. One of the top expectations is a reduction in Goods and Services Tax (GST) on health insurance premiums, making it more affordable for individuals to purchase coverage. Additionally, the sector is hoping for an increase in the tax deduction limit under Section 80D, providing greater tax benefits to policyholders. Other key expectations include simplified policy terms, increased awareness about insurance products, and measures to enhance the overall ease of doing business in the insurance sector. With the government's focus on promoting health and wellness, the insurance industry is optimistic about the introduction of policy reforms that will drive growth and increase accessibility to health insurance for all. Key trends to watch out for include digitalization, data analytics, and regulatory changes that will shape the future of the insurance industry. By implementing these measures, the government can promote health insurance adoption, reduce the financial burden of medical expenses, and support the overall well-being of citizens.
