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.