Dailymirror.news,India,January30th, 2025: As the nation looks ahead to Budget 2025, the insurance sector is urging for key reforms to boost affordability and access to insurance products, with the ultimate goal of achieving universal insurance coverage by 2047.

Mr. Dhruv Sarin, Co-Founder of PBPartners, emphasized that transformative tax measures in the upcoming Budget could significantly advance India’s progress toward becoming a financially secure and well-insured nation.

A key issue highlighted by industry leaders is the affordability of insurance, particularly for low-income groups. The current 18% GST rate on insurance premiums has been cited as a barrier to greater insurance uptake. Industry representatives are calling for a reduction in this rate, which would directly benefit policyholders and make insurance products more accessible.

Additionally, the sector is advocating for an increase in the health insurance deduction limit under Section 80D of the Income Tax Act, suggesting an enhancement to ₹50,000 for individuals and ₹1,00,000 for senior citizens. Experts also propose tax exemptions for contributions to Health Savings Accounts, a move that could assist individuals in managing rising healthcare costs.

Another significant recommendation is the introduction of tax benefits for life and health insurance policies with terms exceeding 10 years. This would encourage long-term financial planning and provide individuals with greater incentives to secure their financial future.

The insurance sector’s appeal comes as the government prepares for the next Budget, with hopes that these reforms will help bridge the affordability gap and make insurance products more accessible to all sections of society.