Insurers seek hike in tax exemption for higher adoption of pure risk plans

Insurance penetration in India stands at 4.2% as of 2020-21, with life at 3.2% and non-life at 1%, according to Irdai’s 2020-21 annual report

Ahead of the Union Budget 2022-2023, which is less than a fortnight away, insurers are asking for various tax sops from the central government to incentivize the Indian population to buy more pure-risk products.

Traditionally, tax exemptions have acted as a catalyst for people to buy insurance products. But, since the pandemic, there has been an organic demand for insurance products, especially pure risk products and guaranteed income products, given the uncertainty associated with the pandemic.

Read more Updates on Budget 2022 here

However, the insurance industry still wants the government to continue with tax exemptions so that enough people get insurance coverage because India still remains a highly under-penetrated market when it comes to insurance.

Insurance penetration in India stands at 4.20% as of 2020-21, with life insurance penetration at 3.20% and non-life penetration at 1 %, according to the Insurance Regulatory and Development Authority of…read more

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