365Telugu.com online news, January 30th,2025: As Budget 2025 approaches, the insurance sector is calling for transformative reforms that aim to achieve universal insurance coverage by 2047. According to Mr. Dhruv Sarin, Co-Founder of PBPartners, tax incentives have played a crucial role in driving insurance penetration, and innovative tax measures in the upcoming Budget could accelerate the path toward a financially secure and well-insured nation.
Affordability remains a major hurdle for low-income groups when accessing insurance products, with the current 18% GST on insurance premiums often discouraging purchases. A reduction in this rate would directly benefit policyholders by making insurance more affordable and accessible.
The sector is also advocating for an increase in the health insurance deduction limit under Section 80D to ₹50,000 for individuals and ₹1,00,000 for senior citizens. Introducing tax exemptions for contributions to Health Savings Accounts could further help individuals cope with rising healthcare costs.
Additionally, the insurance industry recommends offering tax benefits for life and health insurance policies with terms exceeding 10 years, as this would encourage long-term financial planning and greater commitment to securing one’s future.