Pune: Insurance industry experts have voiced their expectations, requesting Union Finance Minister Nirmala Sitaraman to offer tax deduction in Union Budget 2024 to first time health insurance purchasers, especially the younger generation, and one-time tax exemption to individuals who renew expired third-party motor insurance policies within a specified timeframe.

Parimal Heda, Chief Investment Officer, Go Digit General Insurance says, "Providing tax benefits such as categorizing health insurance under the Goods and Services Tax (GST) framework with a reduced tax rate of 5 per cent could reduce the overall premium outgo and encourage people to opt for comprehensive coverage.

Additionally, offering a tax deduction to first time health insurance purchasers, especially the younger generation through a 200% tax exemption on the premium amount under chapter VIA could motivate more individuals to secure insurance coverage. This tax advantage could be phased out gradually over four years to align with the tax benefits offered under Section 80D ensuring a smooth transition."

Almost half of the automobiles, on the roads in India do not have third-party motor insurance, which poses a risk to everyone driving and to the people on the roads. One way to promote the adoption of TP cover is by providing a one-time tax exemption to individuals who renew their expired TP policies within a specified timeframe," Heda added.

Abrarali Dalal, Director & CEO, Sahyadri Hospitals Pvt Ltd said, “We anticipate significant investments in public health infrastructure, primary healthcare facilities, and essential medicines. Moreover, promoting telemedicine and digital healthcare solutions will be vital in making healthcare more accessible and efficient to everyone.

We also foresee major advancements in areas such as Home and Transit Care Services and the rapidly expanding field of Medical Tourism. With India aspiring to be the world’s medical tourism hub, policies which will simplify processes at Indian embassies and provide insurance recognition for Indian healthcare providers, and establish facilities such as welcome desks at airports in major cities will be instrumental."

The potential of AI in diagnostics and medical advancements is immense. We urge the government to expand the relevant schemes to cover the development of hardware supporting advanced digital technologies like Generative AI. This will enable us to fully leverage AI’s transformative power in healthcare."

Rohan Malhotra, CEO, Roadzen says "Our hope for the upcoming budget is centered on significantly deepening motor insurance penetration in India, with a special emphasis on tier 2 and tier 3 cities and beyond. We see a tremendous opportunity to integrate advanced technologies like telematics to offer road safety-linked insurance discounts."

Meanwhile, Gaurav Malhotra, Managing Director, hansgrohe India commented, "We are optimistic about the positive measures that will bolster the luxury real estate sector and enhance the overall market dynamics.

We urge the government to put a rationalization on GST and reduce home loan interest to stimulate demand and growth for the luxury real estate sector. Additionally, we hope to see initiatives aimed at boosting local manufacturing capacity that can further strengthen the make-in-India initiative and also increase the availability of world-class products in the domestic market."