by Tarun Chugh, MD & CEO Bajaj Allianz Life
India’s economic growth presents immense opportunities for the insurance sector to enhance financial resilience. Anticipated income tax cuts in the upcoming budget could boost disposable income, driving higher life insurance penetration.
With the elderly population (50+) projected to grow by 22% in the next six years, incentivizing pension product is imperative.
Aligning tax deduction of life insurance annuity products with the National Pension Scheme (NPS) and addressing the issue of tax on principal component on annuity products can evolve retirement needs effectively.
We urge the government to introduce separate tax deduction for term insurance and extending the tax deduction on life insurance premium under new tax regime as well. These measures will empower individuals to build robust financial safety nets and advance the vision of ‘Insurance for All by 2047’, thereby fostering long-term financial security and inclusivity.
by Mr. Naveen Chandra Jha, MD & CEO, SBI General Insurance.
“Health insurance has emerged as a crucial safety net for Indian families, shielding them from unexpected medical expenses. According to the IBEF report, India is the 4th largest general insurance market in Asia and the 14th largest globally. Data from IRDAI’s annual reports reveals that health insurance has grown steadily at approximately 25% annually over the past three years, highlighting its importance in protecting households.
As India advances toward financial inclusivity and universal healthcare, Budget 2025 offers a pivotal opportunity to further strengthen the health insurance sector. Anticipated policy measures include enhancing accessibility, simplifying tax benefits, and encouraging innovation in insurance products. Initiatives such as Bima Sugam, designed to achieve the goal of ‘Insurance for All’ by 2047, are expected to receive regulatory and fiscal support to address the protection gap. Additionally, the budget is likely to focus on expanding access in underserved regions through government-private partnerships, targeted subsidies, and advancements in digital infrastructure. By fostering a conducive ecosystem, Budget 2025 can empower insurers to contribute to a healthier, more secure India, aligning with the vision of a Viksit Bharat.”
by Srikanth Kandikonda – Chief Financial Officer, ManipalCigna Health Insurance.
With the Hon. Finance Minister presenting the Union Budget in a few days, the health insurance sector stands at a pivotal moment where policy reforms could significantly transform the landscape of healthcare accessibility and coverage in India.
Healthcare costs are rising significantly and expected to double in six years, we urge the government to implement measures that can help make healthcare more affordable for all Indians. For a healthier Bharat, the outlay for healthcare spend has been proposed to be increased to 2.5% of the GDP by 2025 as per the National Health Policy. While India’s out-of-pocket expenditure has seen a decline from 64.2% 2013-14 to around 40% in 2021-22 as per the national health accounts estimate, we are still working towards our mission of achieving Universal Health Coverage. Hence, we request the government to increase outlay for public healthcare spend during this budget, as this is the need of the hour.
Given the rising healthcare costs and the need for higher sum insured cover, the government should reduce tax burden by increasing the limits under Section 80D of income tax for premium paid for health insurance to Rs 50,000 for all and Rs 1 Lakh for senior citizens. This is crucial for achieving the government’s vision ‘Insurance for all by 2047’ and would substantially reduce the financial burden on families investing in their health and financial wellbeing.