Insurers want support for pension plans
As the Centre prepares for the Budget, the insurance industry is hopeful for significant reforms. Experts are of the view that government will address affordability challenges, keeping in mind its vision “Insurance for All by 2047.”
The Indian insurance sector is at the cusp of a new growth trajectory that needs policy intervention by the government. “The Budget provides excellent opportunities to pump up the insurance sector, which is hoping for a reduction in GST rates to make health insurance more affordable, an increase of tax exemption to encourage people to buy insurance policies that would ultimately provide security and long term capital, and rationalisation of capital gain taxation.
In addition, providing incentives for insurance in rural India will significantly impact expanding and promoting insurance in those areas where penetration is very low,” Balachander Sekhar, CEO- RenewBuy, said.
Financial stability is a cornerstone of a secure future. “One of our hopes for the upcoming Budget is to see support for pension and annuity plans which are key financial instruments for the retirement planning needed to create that stability,” Sameer Bansal, MD and CEO, PNB MetLife, said.
He shared that tax support for pension plans offered by life insurers, on par with the National Pension Scheme, would provide both greater choice and allow diversification of assets into multiple pension plans.
