Budget: Spur insurance penetration with lower tax rule

Union Budget 2021 | Spur penetration of insurance with a lower tax regime

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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.

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(The author is the MD and CEO of Bharti AXA Life Insurance)