In anticipation of Budget 2024, the Indian insurance sector is hopeful for significant tax reforms and policy adjustments to enhance accessibility and appeal of insurance products nationwide. Insurers, particularly focusing on life coverage, are advocating for tax relief on annuities and a reduction in the goods and services tax (GST) applied to their offerings.

Experts emphasize the critical role of tax benefits in expanding insurance penetration. They propose revisions to Section 80C of the Income Tax Act to increase the limit for insurance premium payments, aiming to encourage more individuals to invest in insurance for broader coverage and financial security.

In Budget 2023-24, the removal of tax-free status on maturity proceeds from traditional endowment policies was a setback for many insurers. They now seek potential relaxations in this area.

Key expectations from the insurance sector for Budget 2024 include: