Budget 2023 What does the insurance sector want from Finance Minister Nirmala Sitharaman?

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Budget 2023: Finance Minister Nirmala Sitharaman will present the country’s next general budget on February 1, 2023. All industries have some or the other demand for the budget. The Indian insurance market is ranked 11th in the world. This value is about 131 billion dollars. In such a situation, the insurance sector also has high expectations of the budget.

Sarbveer Singh, Chairman and CEO of Policybazaar.com, said: “The times of the Corona pandemic have been times of hardship, flexibility and introspection. After facing the corona pandemic, the most important thing for clients right now is to keep their future financially strong in order to lead a healthy life and meet their goals. Since the pandemic, the consumer desire to financially secure their future with strong protection coverage has increased consumer awareness towards insurance.”

Ankit Agarwal, founder and CEO of Insurance Dekho, says: “We expect a number of reforms in the next budget to give the insurance industry a boost. We expect the government to reduce the minimum capital of Rs 100 crore to start the insurance business. So that more and more people can do this business.

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Demands from the insurance industry of the Budget 2023-

1- More incentive for term insurance: There is a need to introduce a separate category of temporary insurance for tax exemption as the existing limit of ₹1.5 lakh is easily spent with other deductions under section 80C.

2- Increase the existing tax credit in health insurance: From the perspective of health insurance, the insurance industry has developed rapidly in line with the high demand for health insurance after the pandemic. Therefore, a significant step should be taken in line with this demand and increase the tax refund limit under section 80D to at least Rs 1 lakh. In addition, the GST rate on health insurance should be reduced from 18% to 5% to make it more cost-effective for the final consumer.

3-Make tax-free annuities: Additionally, income generated by annuity plans should also be tax-free to encourage adoption of pension products.

4- Tax Benefit for Home Insurance: Home insurance is one of the most frequently overlooked important products that should be heavily promoted through tax benefits and therefore the premium paid for home insurance should also be tax free. taxes.

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