The Union Budget 2025-26 is expected to provide tax benefits and concessions to the insurance and healthcare sectors. Several insurance leaders have made recommendations for the budget, including:
* SBI General Insurance MD and CEO Naveen Chandra Jha hopes for tax benefits and regulatory support for initiatives like Bima Sugam to achieve the goal of “Insurance for All” by 2047.
* Bajaj Allianz Life MD and CEO Tarun Chugh suggests aligning tax deduction on life insurance annuity products with the National Pension Scheme and addressing the issue of tax on principal component of annuity products.
* IFFCO Tokio General Insurance MD and CEO Subrata Mondal expects tax incentives for policyholders to promote wider adoption of insurance products and budgetary support for government-backed insurance schemes like Pradhan Mantri Fasal Bima Yojana and Ayushman Bharat.
* PNB MetLife MD & CEO Sameer Bansal hopes for support for pension and annuity plans, including tax support for pension plans offered by life insurers and removal of GST on premiums for annuity plans.
* Universal Sompo General Insurance MD and CEO Sharad Mathur suggests reducing GST on health insurance to unlock the potential of insurance and ensure wider coverage, innovation, and financial resilience.
* ManipalCigna Health Insurance Chief Financial Officer Srikanth Kandikonda recommends reducing the tax burden by increasing the limits under Section 80D of income tax for premiums paid for health insurance to Rs 50,000 for all and Rs 1 lakh for senior citizens.
The insurance industry is expected to grow rapidly in India, with the non-life insurance industry underwriting a total direct premium of Rs 2.90 lakh crore in 2023-24, registering a growth of 12.76% from the previous year. However, the industry is still facing challenges, including a low penetration rate of 3.7% in 2023-24. The government is expected to address these challenges through the upcoming budget by providing tax benefits and concessions to the insurance and healthcare sectors.