Insurance firms expect Interim Budget proposals to boost penetration

For the insurance industry, the schemes aimed at boosting farmers' income and reducing tax outgoes for the middle-class will encourage consumption, insurers said

Last Updated : Feb 01 2019 | 5:49 PM IST

The insurance industry expects the budget proposals to increase disposable income through hike in tax rebates, pensions, health cover for the masses and digital connectivity, help the sector grow faster.

"The interim budget aims to uplift the poor, both in cities as well as in villages," ICICI Lombard General Insurance's Bhargav Dasgupta said.

For the insurance industry, the schemes aimed at boosting farmers' income and reducing tax outgoes for the middle-class will encourage consumption, while the plan to develop 1 lakh digital villages will boost digital infrastructure, he added.

It can be noted that apart from providing income tax rebate of up to Rs 5 lakh and Rs 6000 per annum in basic income support to small farmers, the budget also rolled out a target to have 1 lakh 'digital villages'.

The life insurance industry will benefit from the increase in disposable incomes, high digital connectivity in the hinterlands and focus on infrastructure boosting job creation, Pankaj Razdan of Aditya Birla Sun Life said.

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The mega pension scheme for the unorganised sector is also a positive for the sector, he said as it is a well- thought-out plan.

Aegon Life' Saba Adil explained the proposal to remove tax threshold on gross income up to Rs 6.5 lakh, if managed well, can give an impetus to life insurance industry as insurance is an important tax saving tool.

With the Ayushman Bharat being the focus, health insurance penetration and healthcare infrastructure will get a major boost, Tapan Singhel of Bajaj Allianz General Insurance said.