Budget 2026: Insurance Reforms for Mandatory Health, Faster Claims, MSME Cover

• Budget 2026 recommendations propose treating insurance as social infrastructure to boost India's low penetration (3.7%).
• A National MSME Protection Scheme is proposed, including mandatory property damage cover, parametric add-ons, and automated payouts, to protect businesses from climate risks and reduce vulnerability.
• Mandatory employer-employee health insurance for the organized sector, including contractual and gig workers, is recommended to address the "missing middle" and reduce out-of-pocket medical expenses.
• Proposals include an Appellate Fast Track framework for quicker motor third-party claims settlement and a Unified Commission and Expense Disclosure Framework for retail policies to enhance transparency.
• Empowering Bima Sugam as a Unified Public Insurance Registry (UPIR) is suggested to create a single, verified repository for the entire insurance ecosystem, improving trust, reducing fraud, and aiding policy insights.

Why It Matters: Proposed insurance reforms for Budget 2026 aim to secure India's growth and citizens.