According to the Annual Report of the Insurance Regulatory and Development Authority of India (Irdai), the country’s insurance penetration in 2023-24 was 3.7 per cent compared to 4 per cent in 2022-23
Even as the population of insured persons in India shows tardy growth, the country’s insurance sector players are hopeful of improved performance if certain tax benefits, including concessions for the insurance and healthcare sectors, from the Union Budget 2025-26 to be unveiled by Finance Minister Nirmala Sitharaman on Saturday (1 February).
SBI General Insurance MD and CEO Naveen Chandra Jha said that as India advances toward financial inclusivity and universal healthcare, the upcoming Budget is expected to further strengthen the health insurance sector. Initiatives like 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, he noted.
Bajaj Allianz Life MD and CEO Tarun Chugh said India’s economic growth presents immense opportunities for the insurance sector to enhance financial resilience. “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,” he added. Chugh also made a case for the introduction of a separate tax deduction for term insurance and extending the tax deduction on life insurance premiums under the new tax regime.
According to the Annual Report of the Insurance Regulatory and Development Authority of India (Irdai), the country’s insurance penetration in 2023-24 was 3.7 per cent compared to 4 per cent in 2022-23. The penetration for life insurance industry marginally declined from 3 per cent in 2022-23 to 2.8 per cent during 2023-24.The penetration with respect to the non-life insurance industry remained the same at 1 per cent during 2023-24.
Srikanth Kandikonda, Chief Financial Officer, ManipalCigna Health Insurance, said that given the rising healthcare costs and the need for higher sum insured cover, the government should reduce 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. “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,” Kandikonda added.
According to the Annual Report of the Insurance Regulatory and Development Authority of India (Irdai), the country’s insurance penetration in 2023-24 was 3.7 per cent compared to 4 per cent in 2022-23. The penetration for life insurance industry marginally declined from 3 per cent in 2022-23 to 2.8 per cent during 2023-24. The penetration with respect to the non-life insurance industry remained the same at 1 per cent during 2023-24.
During 2023-24, the non-life insurance industry underwrote a total direct premium of Rs 2.90 lakh crore in India, registering a growth of 12.76 per cent from the previous year. There were 26 life insurers, 25 general insurers, eight standalone health insurers, 12 reinsurers and foreign reinsurance branches, and two specialised insurers, registered as of March 31, 2024.
