The insurance sector says that the interim budget for 2024 would raise the deduction limit for medical insurance premiums under section 80D

According to the insurance industry, the government need to think about making some significant adjustments to life and health insurance policies so that an increasing number of individuals may fall under its coverage.

Alliance Insurance Brokers’ co-founder and director, Aatur Thakkar, suggested that the government raise the Section 80D deduction limit for health insurance premiums.

“The insurance industry requests that the amount of money that consumers may save on taxes when purchasing health insurance be increased. This might assist in defraying the increased medical expenses. Because healthcare expenditures are on the rise, the government should increase the threshold for individuals to Rs. 50,000 from Rs. 25,000 and for senior people to Rs. 75,000 from Rs. 50,000. To ensure that everyone benefits equitably from healthcare tax incentives, the government should also broaden the Section 80D deduction for health insurance premiums under the new tax structure, according to Thakkar.

In order to encourage more individuals to get insurance, Thakkar said, the government should provide complete tax deductions for life insurance premiums. He added that if individuals get life insurance, the government ought to allow them to keep the money they pay in taxes for the premiums.

According to Vaibhav Kapoor, co-founder of Pristyn Care, at least 40 crore people, or 30% of the population, are uninsured and considered to be part of the “missing middle.”

“There should be particular focus on simplifying and making healthcare funding more affordable. The foreign direct investment (FDI) cap should be raised to 100% and the current health insurance GST rate should be lowered. In order to ensure a healthy future for all, we expect that the budget will demonstrate a progressive commitment to the health sector,” Kapoor said.