Budget2022 Quote by Parag Raja, MD & CEO, Bharti AXA Life Insurance.
Mumbai. The ongoing pandemic has made Indians realise the importance of term insurance for the safety and security of their family. With the current level of under-penetration, the key task at hand is to make this significant financial protection tool more affordable for the masses and lucrative for taxpayers. We therefore propose to ease off the tax burden of 18% on term insurance policies and bring down the GST rate in the range of 2-5% to benefit end users.
For many years, life insurance is clubbed u/s 80C and the maximum tax benefit of Rs. 1,50,000 that an individual can avail gets divided with Pension Fund, NSC, PPF, SCSS, ELSS Mutual Funds, 5 years Bank FDs and Post Office Deposits. We propose a separate section under the income tax act which allows individuals to opt for an additional deduction over and above 80C for investing in a Life Insurance policy. With an increase in re-insurance premiums amidst the pandemic, there is also a need to provide enhanced deduction for insurance premium irrespective of the taxation regime opted by individuals/ HUF. This will reduce the social security burden of the Government.
Budget 2022 Quote by P. C. Kandpal, MD & CEO, SBI General Insurance
The pandemic has been a catalyst in raising awareness around the need for health insurance, however India continues to remain under-penetrated insurance market. To bring a change in this scenario, we believe considering the ease on taxes and increasing the tax exemption under 80D especially on health insurance premium, can help boost a bit of penetration. Apart from impacting health insurance, considering the increasing natural catastrophes, we also anticipate that segments that are impacted by economic losses if are mandated to opt for fire and property insurance, it can reduce the burden of economic losses. (PR)
