Interim Budget 2024: Exempt Insurance Policies From GST, Demands Insurance Sector

Insurance sector has also demanded the government to increase the tax exemption limit under 80C, which will encourage savings, promote insurance coverage, and stimulate economic growth.

New Delhi: Finance Minister Nirmala Sitharaman's Interim Budget 2024 is just a day away with all the sectors pinning high hopes from her announcements. The Insurance Sector has recommended that the finance minister should exempt insurance policies from GST, which will bring down insurance premiums. 

"This step will increase insurance affordability and help fulfill Prime Minister Modi’s dream of insurance for all Indians by 2047. Additionally, we expect the government to increase the tax exemption limit under 80C, which will encourage savings, promote insurance coverage, and stimulate economic growth. Various studies have shown that increased insurance penetration multiplies the economy by reducing overall financial distress and making long-term growth capital available to important nation-building industries," said Ankit Agrawal, CEO and Co-Founder InsuranceDekho.

Satishwar B, MD & CEO, Aegon Life Insurance has recommended for the separation savings for life and health.

"Changing tax sections 80C and 80D to provide separate tax breaks for the life-threatening risk part of life and health insurance payments, as well as for fixed-term insurance plans, could help close the gap in death risk coverage and enhance social security," he said.