Insurance companies are demanding that a separate deduction limit of Rs 1 lakh should be fixed for insurance premium payment under Section 80C of the Income Tax Act in the upcoming budget. Apart from this, insurance companies have also demanded that the present 18 per cent GST applicable on health insurance products should be brought down to 5 per cent. So that this product can be more affordable for the common man.
Tarun Rastogi of HSBC OBC Life Insurance It said that the industry has been waiting for a long time that policy makers will announce a separate deduction of minimum Rs 1 lakh on insurance premium payment under section 80C with a view to motivating people to take life insurance.
It is worth noting that life insurance is a long term solution and it has the benefit of the provisions of section 80C. Presently all financial purchases are clubbed under Income Tax Deduction Section (80C) with a limit of Rs 1,50,000.
Executive Director of Edelweiss Tokio Life Insurance Subhrajit Mukhopadhyay says that it is our demand that in this budget a separate section should be made for tax exemption on premium collected on life insurance.
Chinmay Bade of Future Generali India Life Insurance It is said that life insurance is a type of social security. Therefore, there is a need to review the exemption limit of 1.5 lakh available on it under section 80C.
Let us inform that according to the annual report of IRDAI for 2022-21, the prevalence of insurance in the country is 4.2 percent of the country’s GDP, while looking at the world average, it is 7.4 percent of the world’s GDP. As of March 2021, the prevalence of non-life insurance in the country was barely at 1 per cent.
Experts say that in a situation like the COVID epidemic, health insurance has become the need of the hour. In such a situation, to promote the spread of health insurance in the country, the applicable taxes should be exempted. The government needs to reduce the 18% GST applicable on health insurance premium. This will make health insurance plans cheaper for the people and will increase the spread of health insurance among the common people.
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Rakesh Jain, CEO of Reliance General Insurance It is said that in the upcoming budget, the government should consider bringing healthcare facilities such as diagnostic centers, specialty hospitals, wellness centers under the category of infrastructure. This will make it easier for capital to come into these sectors from outside. He said that in order to provide good and affordable healthcare facilities to the people of the country, the insurance and healthcare sectors have to develop together.
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