'Need further tax exemption'

It is natural for our expectations to be high from this year’s Union Budget, given the progressive mindset of our current government and the critical reforms it has introduced across sectors. This has clearly brought the India growth story under global spotlight.

This year, the introduction of social security schemes by the government has been a great move in deepening the penetration levels of insurance in India. The schemes have helped spread awareness about insurance, especially in the rural landscape.

As a result of increased awareness coupled with GDP growth, the general insurance sector is poised for a growth of around 12 per cent in 2016.

I-T exemption

Increase in the limit for income tax exemption in health insurance last year was a welcome move wherein, we saw a considerable increase in the number of people/families opting policies with up to Rs 10 lakh cover.

However, there is an impending need for further tax exemption. Further exemption will encourage people to get a health insurance policy with extended covers, which is a necessity given the current medical inflation in the country.

The data on the frequency of natural calamities hitting the country has revealed very high number of losses to property, assets and lives. While one protects family with life insurance and health insurance, people tend to overlook the need for home insurance.

A natural calamity or any other misfortunate incident is not something one foresees. Since a house is one’s biggest financial asset, introducing IT exemption on premium paid, we believe, will push more people to opt for home insurance.

(The author is the MD and CEOof Future Generali India Insurance)

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