Union Budget 2025 | Hope to see rationalisation of GST rates on health, life insurance, says SNG & Partners' Ravi Bhadani

Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.

The insurance sector have pinned high hopes on the Union Budget FY 2025-26 documents and are keeping their fingers crossed regarding their expectations from the government's most important financial document of the year.

"Insurance Regulatory and Development Authority or IRDAI has ushered in significant regulatory reforms for the insurance sector as part of the vision of “Insurance for all by 2047”, said Ravi Bhadani, Partner at SNG & Partner Advocates & Solicitors.

"The Union Budget 2025 presents an opportunity to transform the insurance sector. Policy measures like increasing the FDI limit to 100 per cent, reducing the NOF (Net Owned Fund) requirement to ₹50 crore, introducing composite licenses for insurers, and enabling an open architecture for individual agents can foster greater competition, innovation, and efficiency in the sector.

"On the taxation front, we hope to see rationalisation of GST rates on health and life insurance which will make insurance products more affordable and accessible for all," he said.