Pre - Budget Quote | Rushabh Gandhi | MD & CEO | IndiaFirst Life

For the life insurance sector, we expect the Union Budget to consider the following to bridge the protection gap and promote life insurance as a financial product for protection and long-term savings:

 

  • Providing a separate tax deduction for life insurance premiums.

  • Reducing GST on term insurance plans and considering "zero rating" for PMJJBY and Micro Insurance products, to make them more affordable and accessible for the masses.

  • Extending the 10(10D) benefit to annuities to encourage retirement planning and provide tax relief to senior citizens.

  • Introducing composite license for insurers to empower them to sell life, non-life, health insurance products.

  • Facilitating economies of scale and encouraging employees of life insurance companies to distribute other financial service products for a fee.

  • Allowing related value-added services, such as wellness programs, health screenings, telemedicine, roadside and legal aid, claim support, etc... to be sold along with insurance.

  • Eliminating training for the simplest products and making it more stringent for complex products. In other words, establishing a graded distribution model with varied degrees of training basis product complexity.

We believe these steps would further strengthen the life insurance penetration in India while benefiting the economy and the society.


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