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Hike in premium exemption, indication on GST cut on premium budget expectations of insurers

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GST

An indication on reduction in the Goods and Services Tax (GST) rate on health insurance, giving infrastructure status to healthcare facilities, hiking tax deduction for insurance premium are some the budget wishes listed out by the insurance sector.

Senior industry officials also urged the government to take steps to increase the insurance penetration in the country.

Even though the GST rates does not form part of the union budget, insurers want an indication towards slashing of the rates on insurance premium in the Finance Minister Nirmala Sitharaman’s budget speech.

“Health insurance is an essential commodity and needs to be slotted in the five per cent GST tax slab to make it more affordable to access quality healthcare,” said Anup Rau, MD & CEO, Future Generali India Insurance

A significant reduction in the GST on all personal lines of products-from the existing 18 per cent to five per cent will encourage more people to buy health insurance. For senior citizens, it should be exempted.

According to Rau, increasing the tax deduction limit in Section 80D of the Income Tax Act – from Rs 25,000 to Rs 150,000 – can further help in penetration of health insurance.

“The rising medical costs and the increase in the incidence of critical illnesses make it an unmanageable expense for middle-income and lower-income groups. So, a higher tax deduction limit for health insurance plans is the need,” he argued.

Given the under-penetration of insurance in India and the need to bring a wider gamut of population under the safety net, small ticket size insurance products like micro-insurance, sachet products, etc. can be exempted from GST, Rau added.

The services by the healthcare providers don’t fall under the GST radar while at the same time buyer of the health insurance product pays the same given a large portion of the coverage is directed towards the cost of hospital bills, remarked Yogesh Agarwal, Founder & CEO, Onsurity, an insurance-health tech startup.

“In the upcoming union budget, we request the Government to intensify steps towards increasing insurance penetration in the country, since even today a large part of the population in the country still remains underinsured or uninsured,” Roopam Asthana, CEO & Whole-Time Director, Liberty General Insurance said.

Citing the 2020-21 annual report of the Insurance Regulatory and Development Authority of India (IRDAI) Asthana said, the insurance penetration in India stands at 4.2 per cent of the gross domestic product (GDP) as against a global average of 7.4 per cent.

Asthana said as of March, 2021 the non-life insurance penetration in India stood at barely one per cent and urged the government to slash the GST from 18 per cent.

“Further even though GST is not covered under budget, however policy makers’ should also look towards exempting or lowering GST rates on life insurance products and these should ideally be classified under essential product category,” Tarun Rustagi, Chief Financial Officer, Canara HSBC Oriental Bank of Commerce Life Insurance said.

According to Rustagi, life insurance premium should be given a separate deduction limit of Rs 100,000 under Section 80C of the Income Tax Act.

Also, pension products should be given parity with NPS in tax incentives.

Further, for annuity products, deduction for principal component should be allowed and only the interest accretion should be taxed similar to fixed deposits.

Suitable changes should also be made under section 10(10D) to allow exemptions for all Life Insurance products where life insurance coverage is present which may be on the basis of policy term and sum assured ratio.

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Navi Mumbai: CIDCO’s 9.6-Km Kharghar Coastal Road Work To Begin In 2026, Promises Faster NMIA Connectivity By 2029

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Navi Mumbai: Construction of the much-anticipated Kharghar Coastal Road — a key link that will enhance connectivity to the upcoming Navi Mumbai International Airport (NMIA) — is expected to commence in early 2026, following the receipt of mandatory forest clearances.

Planned by the City and Industrial Development Corporation (CIDCO), the 9.678-kilometre-long and 30-metre-wide arterial road will connect the airport to major nodes such as Belapur and Nerul, significantly improving regional mobility and supporting economic growth across Navi Mumbai.

The project will also provide direct high-speed access to the International Corporate Park (ICP) being developed on the lines of Bandra Kurla Complex (BKC), the Golf Course, and the FIFA-standard Centre of Excellence (COE) at Kharghar.

A grade-separated interchange over the Sion-Panvel Expressway is part of the plan to ensure smooth traffic flow and reduce congestion between the airport and nearby business and recreational hubs.

Of the total road length, 6.96 kilometres will be newly developed, while the remaining portion will integrate with the existing network. The corridor will also cater to the anticipated transport demand from upcoming projects such as the Water Transport Terminal and Pradhan Mantri Awas Yojana (PMAY) housing schemes in the area.

CIDCO has awarded the construction contract to the J Kumar–J M Mhatre Joint Venture. Officials said the project will not only boost airport connectivity but also strengthen Kharghar’s position as a major residential and commercial hub, linking it seamlessly to Taloja and Navde.

“Known for its well-planned infrastructure, green cover, and educational institutions, Kharghar is poised to witness a new phase of growth once the coastal road becomes operational. Kharghar coastal road is estimated to be ready by 2029 if everything goes as per plan,” an official from CIDCO said.

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Telecom operators embrace AI to bolster revenues, drive efficiency globally

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New Delhi, Nov 8: Leading telecoms globally are deploying artificial intelligence (AI) across network operations, customer service, and fraud prevention to drive efficiency and reduce costs, according to a new report.

These initiatives are already contributing to EBITDA margin gains, with predictive maintenance and automated support systems leading the way, according to an IDC report.

AI also enables personalised offerings and dynamic pricing, boosting average revenue per user (ARPU) and reducing churn.

Fraud detection systems enhanced by AI are helping reduce losses, reinforcing customer trust and regulatory compliance. With AI accelerating time-to-market for new services, telecoms can better monetize emerging technologies like 5G and edge computing.

“In the longer term, as AI continues to evolve, it will be increasingly recognized not as a mere technological enhancement, but as a strategic enabler poised to drive sustainable growth for telecommunications operators,” said the report.

Meanwhile, worldwide spending on telecommunication and pay TV services is projected to reach $1,532 billion in 2025, representing an increase of +1.7 per cent year-on-year, according to the IDC report.

The latest forecast is slightly more optimistic compared to the forecast published earlier this year, as it assumes a 0.1 percentage point higher growth of the total market value.

The regional dynamics remain mixed, with inflationary effects, competition, and Average Revenue per User (ARPU) trends playing a central role in shaping market trajectories, said Kresimir Alic, research director, Worldwide Telecom Services at IDC.

The breakdown by telecom service type confirms that established trends remain intact, despite adjustments to overall market forecasts.

Mobile continues to dominate, driven by rising data consumption and the expansion of M2M applications, which are offsetting declines in traditional voice and messaging revenues.

Fixed data services are also expected to grow steadily, fuelled by increasing demand for high-bandwidth connectivity.

The global connectivity services market is projected to grow at a compound annual rate of 1.5 per cent over the next five years, maintaining a cautiously optimistic outlook.

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Govt plans AI-based eKYC, global credential verification in DigiLocker

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New Delhi, Nov 8: The Ministry of Electronics and IT on Saturday announced plans for AI-based eKYC and global credential verification in the DigiLocker platform.

The platform has evolved from a secure document storage service into a trust layer that connects citizens with ministries and departments, according to an official statement.

National e-Governance Division (NeGD), Ministry of Electronics and IT organised the National Conference on DigiLocker to discuss and showcase how DigiLocker evolves into a cornerstone of trust, convenience, and efficiency across government, education, and industry sectors.

The conference underscored the transformative role of DigiLocker in facilitating paperless governance, inclusive education, and secure digital services.

“DigiLocker serves as the trust layer connecting citizens, ministries, and departments—enabling secure, interoperable, and accountable digital governance. Our vision is a future where every digital interaction is trusted, every citizen empowered, and every institution accountable” said S. Krishnan, Secretary of MeitY, who chaired the conference.

Krishnan said that the platform advances India’s digital journey from connectivity to capability, service delivery to self-reliance and now from digitalisation towards trust.

Abhishek Singh, Additional Secretary of the Ministry of Electronics and IT, outlined the future of DigiLocker with AI-based eKYC and global credential verification, positioning it as a global model for paperless governance.

Presentations were made on integration of Digi Locker with Pension and Treasury systems in Maharashtra and with over 500 services through Sewa Setu Portal in Assam, the statement noted.

Seven states, including Assam, Himachal Pradesh, Madhya Pradesh, Meghalaya, Kerala, Maharashtra, and Mizoram, have been recognised as “DigiLocker Accelerators” for their distinct achievements.

DigiLocker allows citizens to access, verify, and share IDs, financial credentials and certificates securely.

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