JOIN USUnion Budget 2021 | Spur penetration of insurance with a lower tax regime
By Parag Raja,
Life insurance plays an important part in individual well-being and social and economic welfare and protects us from most risks.
The unprecedented times following Covid-19 have strengthened the bias towards protection policies which bring real insurance products to the customers and build a safety net for their families.
However, a large part of the population in the country still remains underinsured or uninsured. We expect this budget to spur penetration of insurance with a lower tax regime and higher tax free slabs in a crammed 80C and 80D limit where life insurance comes across to be grappling for space.
Undoubtedly, the insurance industry needs a much needed boost from the government in terms of policy incentives and relevant tax relaxations. This will also enhance insurance penetration and financial inclusion in the country.
(The author is the MD and CEO of Bharti AXA Life Insurance)