How Budget can unlock potentials in non-life insurance

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₹1 trillion in premiums, growing by 20.2%. Yet, 73% of India's population lacks health insurance. With medical inflation at 14%, promoting health insurance is critical.

However, it is also true that close to 73% of India’s population is not covered by health insurance. If we consider this, along with the fact that at 14%, India has one of the highest rates of medical inflation, we have a challenge here that needs to be resolved on priority. There is no doubt that a lot needs to be done to promote awareness about adequate medical coverage, especially for families with a significant number of dependents requiring medical care due to age or chronic conditions.

Offering a reduction or complete waiver of GST on health insurance premiums could encourage purchase and renewals of health insurance in the long term. Additionally, providing tax benefits for insurance for senior citizens would ensure that all sections of the population are suitably covered in terms of health insurance. It would also be pertinent to mention here that including insurance spends by corporates under corporate social responsibility (CSR) could incentivize several companies to opt for comprehensive group health insurance coverage for employees and by extension, their families.

Along with lack of insurance, the insurance protection gap is an equally formidable challenge. Let’s consider property insurance, for instance. Having a roof over one’s head to call one’s own remains a dream of the average Indian household.