look news india
Insurance companies are hopeful that the upcoming general budget will provide them with several tax benefits including concessions for the insurance and healthcare sectors. Finance Minister Nirmala Sitharaman will present the general budget for the financial year 2025-26 on February 1.
Big expectations of the industry
Naveen Chandra Jha, Managing Director (MD) and CEO, SBI General Insurance, said initiatives like ‘Bima Sugam’ are expected to get regulatory and economic support to achieve the goal of ‘Insurance for All’ by 2047. Sarabveer Singh, joint group CEO of PBFintech, parent company of insurance platform Policy Bazaar and financial services platform Paisa Bazaar, has pitched for changes in tax rules under Section 80C and 80D in the insurance sector.
80C and 80D need improvement
He said, “One of the most urgent reforms in the insurance sector is the need to change the tax rules under Section 80C and 80D. Currently the limit for payment under 80C is Rs 1,50,000, which has remained stable for the last few years. “It also includes other requirements like PPF and loans, leaving people with less wiggle room to take their important financial decisions.”
opportunities for the economy
Tarun Chugh, MD and CEO, Bajaj Allianz Life, said India’s economic growth presents many opportunities for the insurance sector to enhance financial strength. He suggested that the retirement needs can be effectively addressed by linking the tax deductibility of life insurance annuity products with the National Pension Scheme (NPS) and resolving the issue of tax on the basic component of annuity products.
lack of insurance access
According to the annual report of the Insurance Regulatory and Development Authority of India (IRDAI), the country’s insurance penetration stood at 3.7 percent in 2023-24 compared to four percent in 2022-23. The penetration of the life insurance industry declined from three per cent in 2022-23 to 2.8 per cent during 2023-24, while the penetration of the non-life insurance industry remained stable at one per cent in 2023-24.
need for government reforms
Subrata Mandal, MD and CEO, IFFCO Tokio General Insurance, said the Union Budget provides an essential opportunity for the government to implement reforms that can address industry challenges and encourage wider adoption of insurance products. Can do. Sameer Bansal, MD & CEO, PNB MetLife, said the upcoming Budget is expected to provide support for pension and annuity schemes.