You are here: Home » Budget » News » Financial Sector
Business Standard

Insurance industry seeks hike in tax exemption limit

Suggestions part of insurance sector wish-list for Budget 2016-17 to be presented on Feb 29

Press Trust of India  |  New Delhi 

New insurance rules may not help private players

Government should raise limit for health and introduce fiscal measures to help increase its penetration, say industry officials.

The suggestions forms part of sector wish-list for the 2016-17 to be presented in Parliament on February 29..

Read our full coverage on Union Budget 2016

"There is an impending need for further as health is still not adopted as a necessity for one's self and family.

"Further exemption will encourage people to get a policy with extended covers which is a necessity in today's time given the current medical in the country", Future Generali India Insurance MD & CEO K G Krishnamoorthy Rao told PTI.

In the Union 2015-16, government had increased the limit for exemption for

Rao said it helped the company see fair increase in number of people opting for policies with up to Rs 10 lakh cover.

Tata AIG General Insurance Chief Financial Officer Miranjit Mukherjee said the recent catastrophes and sufferings faced by people has highlighted that families in India are inadequately insured specially for their homes/dwellings.

"Hope government encourages families through fiscal measures to adequately insure their homes, which would ensure that families remain protected and also increase penetration of general insurance business in India", Mukherjee said.

Besides, he said, government must fast-track the Universal Health Schemes and spread it to as many states as possible.

"The government must put a road-map for introduction of the Goods and Services Tax (GST) so that there is clarity on the date on which would come in place", he said.

FundsIndia's Mutual Fund Research Head Vidya Bala said key bills like and land need fast approval to pep-up the overall business sentiment, adding there are steady changes happening at the ground level.

The impact of various reform initiatives is widely expected to be seen in the next two financial year 2016-18 will then encourage private companies to spend their capital," she said.

First Published: Sun, January 31 2016. 12:42 IST