IBAI Meets Finance Minister, Proposes Key Measures To Deepen Insurance Inclusion

The government recently removed the Goods and Services Tax (GST) from individual health and life insurance policies, a step which is supposed to bring down the GST burden on premiums paid by the insurance buyers and policyholders.

The Insurance Brokers Association of India (IBAI), which represents more than 750 licensed insurance brokers across the country, met Finance and Corporate Affairs Minister Nirmala Sitharaman on October 6 to congratulate the government for what it called a “historic step”, the GST reforms in insurance.

The association says that the recent GST exemptions on retail health and select life insurance products will make protection more affordable and help bring millions of Indians under the insurance fold.

Calling the reform a milestone toward the government’s vision of “Insurance for All by 2047”, IBAI highlighted that this move demonstrates a strong policy commitment to financial inclusion.

IBAI’s proposal for deeper inclusion of insurance

Along with acknowledging the government’s efforts, the association also submitted a set of proposals aimed at deepening insurance penetration and improving policyholder protection across the country.

One of the key suggestions was to embed suitable insurance coverage within Mudra loans, ensuring that small entrepreneurs and borrowers are protected against unforeseen risks.

The association also proposed to declare April 19, the founding day of the Insurance Regulatory and Development Authority of India (Irdai), as National Insurance Awareness and Policyholder Day, which it said could serve as a people’s movement to raise awareness about insurance and its benefits.

Another major recommendation was to make insurance inclusion a part of Corporate Social Responsibility (CSR). The association has suggested that paying insurance premiums for vulnerable groups and adopting villages under the ‘Insurance for All’ initiative should qualify as eligible CSR activities.

The IBAI also proposed a risk-based insurance oversight framework for India’s insurance sector, which should align with global best practices. This is expected to strengthen governance and promote transparency in the insurance ecosystem.

Further, the association has proposed a unified, technology-driven platform for insurance claims and grievance redressal that could simplify and accelerate settlements for policyholders.

Speaking on the proposals, IBAI president Narendra Bharindwal said, “The recent GST reforms are a game changer for insurance penetration in India. With supportive measures such as awareness programs, embedded coverage, and stronger governance frameworks, we can ensure that the benefits of insurance truly reach every citizen.”

He also added that the association remains committed to working closely with the government, insurance regulator, and industry stakeholders to translate the “Insurance for All” vision into reality.

The association also offered its assistance with data, research insights, and coordination support, which will be required to implement these measures.

With these proposals that intend to put together reforms, awareness, and institutional strengthening along the same line, IBAI believes the sector can take a decisive step toward universal insurance access and greater protection for policyholders in India.