BS Insurance Round Table 2020: Insurers unnerved by new tax regime

Leaders of the insurance industry bat for 100 per cent FDI in the sector

Even as Finance Minister Nirmala Sitharaman did away with most income-tax deductions in the new tax regime announced in her Budget for 2020-21, the insurance industry remains unfazed and confident of retaining customers. They, however, maintain that removing tax incentives given for putting money in insurance is disservice to customers.

"If tax-saving was a sweetener, we will figure out a way to work without the sweetener. Indian consumers buy insurance for a variety of reasons, and tax incentives stand much lower on the list. But the move will surely make some impact, as it directly affects customers," said RM Vishakha, MD