India Tax Cut to Make Life, Health Insurance Affordable for Many

A long-awaited tax exemption for health and life insurance could make the products cheaper by almost a fifth, boosting demand among millions of Indians without a cover.

A panel of federal and state finance ministers on Wednesday scrapped the 18% tax on individual life and health policies as part of a broader overhaul, a move expected to significantly improve coverage in one of the most under insured countries globally.

India’s insurance market has been growing at a much slower pace than the economy. Measured as a percentage of gross domestic product, penetration in the country stood at 3.7% in 2024 ...