Specials

Government should address the long-pending insurance bill: Sanjay Tripathy

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/event-coverage/2014/07/08/sanjaytripathy.JPG?itok=DpYDhQfk

Life insurance is one of the most important segments of the financial services industry and has contributed immensely to boost various sectors in the economy through its ability to make long term investments, and provide huge employment opportunities. Currently the sector is reeling under tough economic environment and regulatory changes that have been instituted in last couple of years. The industry needs support from the government of India, to help it in further contributing to nation building in the coming years.

As an immediate step, the new government should address the following to boost growth in the life insurance industry:

1. Re-looking at the current investment limits for tax rebates and certain current tax provisions would augur well for the industry. Life insurance is a socio economic instrument. In absence of any strong social security system by the government, at least the investment in life insurance premiums should be given additional limit of at least Rs 1 lakh, instead of clubbing the same with other investments u/s 80C of the Income tax Act, 1961. This will inculcate the habit of systematic and consistent long-term savings among retail investors. The present limit of Rs 1 lakh has not been increased in the past several years.

2. To encourage customers to meet their retirement needs, investment in pension premium should be given separate deduction. Currently, such investments are clubbed with 80C investments. Annuity has been an unpopular investment choice because of its tax disadvantage. The maturity proceeds from Annuity are currently fully taxable as income, which effectively means that income is taxed twice.

3. The current limit of Rs 15,000 in health insurance must be enhanced to at least Rs 50,000. Currently an individual gets a deduction of Rs 15,000 for health insurance premiums paid (apart from a similar deduction on premiums paid on the lives of their parents).

Growing inflation has increased the cost of medical treatment. This has made it necessary for health insurance to be taken by every individual. In order to help the common man in meeting increased medical costs, offering more tax incentives would help in promoting health insurance.

4. The service tax charged to insurance companies has been increased to 12 per cent from the existing 10 per cent and the rate on life insurance policies where entire premium is not toward risk cover increased to 3 per cent for the first year and maintained at 1.5 per cent for subsequent years. At the same time mutual funds are exempted from such tax.

Overall, the change in tax has rendered life insurance at a position of disadvantage vis-a-vis MFs, PPFs, NPS, etc. Revisiting these changes will definitely provide the necessary impetus to help attract funds into long term savings and protection products offered by the life insurance industry.

5. Armed with an absolute majority, the new government is expected to address the long pending insurance bill, which looks to raise the foreign direct investment (FDI) cap in the sector from the current 26 per cent to 49 per cent. FDI relaxation would encourage long-term fund inflow that would both encourage the growth of insurance in India as well as provide the government with access to funds to aid infrastructure growth.

Moreover, insurance industry has seen negative job creation as number of agents and employees have been on the wane. FDI would get in greater investments into the sector and make it an attractive proposition for good talent.

We also expect clarity to emerge on the road map of DTC and GST. This would help the industry better plan in the implementation of the new regulations.

 (These are purely personal views of HDFC Life senior executive vice president marketing product, digital & e-commerce Sanjay Tripathy and indiantelevision.com does not subscribe to these views.)

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/25/mirror.jpg?itok=Me3WPO9L
Mirror NOW drives voter awareness with #GetInked

With the General Elections stepping into its fourth phase, Mirror Now the channel that focuses on issues impacting people’s lives, continues to drive robust voter participation with #GetInked, an election special initiative educating the citizens on the importance of voting to assert their...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/19/siddharth.jpg?itok=E6srp_j1
An overview of business news channels ahead of general elections

The world’s largest democracy is witnessing one of the most fiercely fought elections in recent times.

Specials Elections 2019
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/17/votekaro.jpg?itok=NLYVXV56
We deliver across the nation. Now let’s deliver for the nation.#VoteKaroPhirSwiggyKaro

Martin Luther King Jr. had said, “Our lives begin to end the day we become silent about things that matter.” He could not have been more astute.

Specials Elections 2019
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/16/MTV.jpg?itok=vKNMHgyB
MTV’s latest election campaign urges you to VOTE. Because You Can

“Voting is not only our right, it is our power.” These words by Loung Ung vehemently evoke strong democratic sentiments.

Specials Elections 2019
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/16/network18.jpg?itok=h22FZmXC
Network18 urges Indians to vote via ‘Button Dabao, Desh Banao’ campaign

In their bid to urge Indians to go out and make their vote count, Network18, one of the leading media conglomerates in the country, launched the initiative, ‘Button Dabao, Desh Banao’.

Specials Elections 2019
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/16/airtel.jpg?itok=0a13VePs
Airtel TV app rolls out Special 'Election 2019' Section

To bring all the election action and updates from across India to its users, Airtel TV app has created a special ‘Election 2019’ section.

Specials Elections 2019
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/15/money.jpg?itok=ny_wniLu
Moneycontrol express sets course to capture pre-election fervor

As the country and its citizens lie on the brink of another landmark general election, capturing the mood and pulse of the nation is the need of the hour. Moneycontrol, India’s leading financial and business digital platform,

Specials Elections 2019
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/15/goafest.jpg?itok=flstqmJc
Three days of learning, experience and exploring new horizons at Goafest 2019

Day 3 of Goafest comes to an end with some great insights, touching stories and emotional moments.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/12/ele.jpg?itok=j49H85Ts
Put on your voting shoes with Parryware’s #EverySeatCounts campaign

With the start of the polling season for India’s largest democratic congregation, Parryware, India’s leading bathroom brand launches #EverySeatCounts.

Specials Elections 2019

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories