Insurance Sector Demand from Finance Minister: Insurance companies hope that from the upcoming general budget, they will get many tax benefits including concessions for insurance and healthcare services areas. Finance Minister Nirmala Sitharaman will present the general budget for FY 2025-26 on 1 February. The insurance industry has explained the need to change tax rules under Section 80C and 80D, one of the most important reforms in the insurance sector.
Need financial support
SBI General Insurance Managing Director (MD) and Chief Executive Officer (CEO) Naveen Chandra Jha said that by 2047, initiatives like ‘Insurance Sugar’ to achieve the goal of ‘Insurance for all’ by 2047 to get regulatory and financial support to initiatives like insurance. hopefully.
There should be change in tax rules under 80 C and 80D
CEO Sarabveer Singh, joint group of PBFFINTEC, the original company of the Insurance Platform Policy Market and Financial Services Platform Paisa market, advocated a change in tax rules under sections 80C and 80D of the Income Tax Act in the insurance sector. He said that one of the most important reforms in the insurance sector needs a change in tax rules under sections 80C and 80D. The payment limit under 80C is currently Rs 1,50,000, which has not changed for the last few years. It also includes other essential things like PPF and debt, which left people less scope for their important financial decisions.
Retirement requirements are met
Tarun Chugh, MD and CEO of Bajaj Aliaj Life, said that India’s economic growth offers several opportunities to increase financial strength for the insurance sector. He said that the tax deduction of life insurance annuity products can be effectively developed by connecting the tax deduction with the National Pension Scheme (NPS) and solving the issue of tax on the basic component of annuity products.
Insurance access to the country very little
According to IRDA annual report, the country’s insurance access was 3.7 percent in 2023-24 in 2022-23. The reach of Life Insurance Industry declined marginally to 2.8 percent during 2023-24 in 2022-23. Recourse regarding non-life insurance industry was the same at 1 percent during 2023-24.
Pension and annuity schemes get support
Subrata Mandal, MD and CEO of IFFCO Tokyo General Insurance, said that the Union Budget provides an essential opportunity to the government to implement reforms, which can solve the challenges of the industry and encourage wide adopting insurance products. Is. Sameer Bansal, MD and CEO of PNB Metlife said that one of our expectations for the upcoming budget are about pension and support for annuity schemes.
