Budget 2026: Insurance Sector Demands Tax Relief, Preventive Care, and Reforms

• Insurance sector experts call for fiscal and structural reforms to boost affordability and penetration, aligning with 'Insurance for All by 2047' vision.
• Medical inflation (11.5%-14% in India) is a major concern; experts suggest removing GST on premiums, enhancing tax benefits for OPD/preventive screenings, and increasing public health spending.
• Demands include raising Section 80C limits or creating a separate section for insurance premiums to improve penetration.
• Industry leaders advocate for input tax credit or offset mechanisms for GST paid on distribution/technology costs, and stronger public-private partnerships.
• Calls to revise Section 80D limits significantly (e.g., ₹50,000 for individuals, ₹1 lakh for senior citizens) to reflect double-digit medical inflation and bridge the protection gap.

Why It Matters: Insurance sector seeks comprehensive tax relief, increased focus on preventive care, and structural reforms in Budget 2026.