7 months ago
Insurers Seek Budget Changes for Growth
Life and health insurers in India are asking the government to make some changes in the upcoming Budget.
They want the income tax exemption limit on life and health insurance premiums to be increased.
They also want the tax treatment of insurance annuities to be the same as other pension products.
This means only the returns on annuity payouts would be taxed, and similar deductions would be extended.
These changes would help more people buy insurance and save for retirement.
The insurers also want the tax rules for life insurance policies to be simpler and more favorable.
For health insurance, they suggest adding special tax benefits for preventive healthcare to lower long-term medical costs.
Insurers seek higher income tax exemption limits on life and health premiums in the Budget.
Proposal to align tax treatment of insurance annuities with other pension products.
Suggestions to simplify and enhance tax benefits for life insurance policies.
Health insurers propose separate tax benefits for preventive healthcare to lower long-term costs.
Current Section 80C limit for life insurance premiums is ₹1.5 lakh per annum, shared with other savings instruments.
- Who
- Life and health insurers in India
- What
- Proposed tax changes in the Budget
- Where
- India
- When
- Upcoming Budget
- Why
- To boost insurance penetration and long-term savings
Key facts
- Expected Budget Measures
- Higher tax exemptions, annuity tax parity
- Current Section 80C Limit
- ₹1.5 lakh per annum
- ULIP Premium Threshold
- ₹2.5 lakh annually
- Medical Inflation Projection
- 11.5%–14%
- Key Players
- Bajaj Life, Ageas Federal, Generali Central, ManipalCigna
Quotes
Jude Gomes
MD & CEO, Ageas Federal Life Insurance
“We also call for simplifying the taxation of maturity proceeds from life insurance policies and revisiting the current ₹2.5 lakh annual premium threshold for ULIPs, in line with rising income levels and inflation.”
financialexpress.com
“We recommend revising the long-standing Section 80C limit or creating a separate deduction category for life insurance premiums and annuity contributions.”
financialexpress.com
Tarun Chugh
MD & CEO, Bajaj Life Insurance
“This would allow individuals to choose retirement products based on suitability, rather than tax differences.”
financialexpress.com
Srikanth Kandikonda
CFO, ManipalCigna Health Insurance
“Introducing separate and enhanced tax benefits for out patient department services and preventive health screenings, beyond the current limits under Section 80D, would encourage wider adoption of preventive care.”
financialexpress.com
