Budget 2025: Insurtech Startups Demand Tax Relief, GST Cut & Digital Infrastructure Boost
By: Admin
January 29, 2025
Categories: GST, Recent News
4 Min Read
Insurtech Startups Advocate for Policy Reforms
With the Union Budget 2025 approaching, Insurtech startups are pushing for key reforms to improve insurance accessibility, affordability, and technological growth. Industry leaders emphasize tax relief, GST reduction, and digital infrastructure development as essential for driving insurance adoption and financial inclusion.
Tax Relief & GST Reduction: Key Industry Demands
The Chairman and Group CEO of PB Fintech stressed the need for a comprehensive strategy to achieve “Insurance For All” by 2047.
“Bridging the insurance gap requires a joint effort from the government, public sector, and private enterprises,” he stated. “Further tax exemptions on health and life insurance premiums would encourage more households to invest in financial security and savings.”
Additionally, he suggested re-evaluating the GST rate on insurance premiums and increasing deduction limits under Sections 80C and 80D to boost insurance adoption.
Echoing similar concerns, the CFO of InsuranceDekho urged the government to address affordability challenges.
“Reducing GST on health insurance premiums and increasing the Section 80D deduction limit to ₹50,000 for individuals and ₹1,00,000 for senior citizens would expand financial protection for Indian families,” he said.
He also highlighted the need for separate tax concessions on life insurance premiums and investment-friendly reforms to align India’s insurance framework with global standards.
Boosting Digital Infrastructure for Insurtech Growth
Industry leaders stress the importance of digital infrastructure to support the evolving Insurtech ecosystem.
The CEO and Co-founder of CoverYou, an aggregator for indemnity insurance for doctors, noted that technological advancements in healthcare demand better insurance solutions.
“Enhanced digital infrastructure and awareness initiatives will empower healthcare providers to make informed decisions and protect their practices,” he stated.
The CEO and Co-founder of Bimapay Finsure, a lending platform for insurance premium financing, emphasized the role of mobile penetration and internet accessibility in rural areas.
“Affordable connectivity is crucial for expanding insurance coverage to underserved populations,” he said. “Government incentives for technology adoption will drive innovation in the Insurtech space.”
AI, Data Analytics & Cybersecurity: The Future of Insurance
Industry experts believe AI and data analytics can revolutionize insurance through fraud detection, risk assessment, and personalized policies.
“Government support for AI-powered Insurtech solutions could significantly improve efficiency and trust in digital insurance services,” said an industry leader.
However, cybersecurity remains a major concern.
“With the increasing reliance on digital platforms, safeguarding customer data is critical. Budget allocations for cybersecurity measures will strengthen trust in digital insurance,” he added.
Corporate Tax Incentives for Employee Insurance
The Managing Director of Lockton India recommended targeted tax incentives for corporations to encourage employee health insurance adoption.
“Strengthening corporate health insurance policies will boost economic resilience and contribute to universal coverage goals,” he said.
Conclusion
As Budget 2025 nears, Insurtech startups hope for progressive reforms that foster innovation, affordability, and financial inclusion in India’s insurance sector.
