Budget 2023: Finance Minister Nirmala Sitharaman is going to present the general budget on 1 February. Let us know the expectations of the insurance sector from the budget.
Budget 2023: The general budget of the country is going to be presented in just a few days from now. Finance Minister Nirmala Sitharaman can make some big announcements in Budget 2023 that will give relief to the common man.
In such a situation, the stakeholders of every industry are waiting for this budget with great expectation. Let us know today what are the expectations regarding the insurance sector in Budget 2023.
What new reforms can be made in this budget in the insurance sector and on which fronts there can be major changes. For this, we will be accompanied by Firoz Aziz, Deputy CEO of Anandrathi Wealth Management and Ajit Goswami, Product Head, IDBI Asset Management Limited.
Insurance penetration in India
- Limited penetration of insurance a major challenge
- Insurance in India is only 4.2% of GDP
- while globally insurance penetration is 7.4%
- Non life insurance coverage is only 1%
Insurance Mange Boost
- 80C limit increased to ₹ 1.5 lakh
- Separate exemption for pension policy
- 80D exemption increased from ₹ 25 thousand to ₹ 50 thousand
- Minimum capital to start insurance business reduced
- GST rate on premium reduced from 18% to 6%
- Tax rate on surplus to be reduced from 12% to 6%
- ULIP premium above ₹2.5 should be tax-free
- Crop insurance coverage should be increased from 25% to 100%
- Separate health scheme for farmers
cheap insurance
- GST rate on insurance to be reduced to 5%
- Insurance for senior citizens should be tax-free
- Provision for separate exemption for term policies
- Exemption on health insurance premium should be increased Need to
- include 80D exemption in the new tax system
- Group health insurance to the employer Input tax credit on the policy
- Premiums up to ₹ 2.5 lakh on ULIPs are tax free
80D exemption increased
- Covid hikes medical expenses Exemption of
- ₹ 25 thousand (Self), ₹ 50 thousand (Senior Citizen) in 80D
- Demand to increase health insurance limit from ₹ 25 thousand to ₹ 50 thousand
- Exemption on health expenses for senior citizens ₹ 1 lakh Are
demand on life insurance
- Differentiate life insurance from other investment options
- 80C exemption on life insurance premiums 80C
- total exemption limit up to ₹1.5 lakh only
- Life insurance maturity benefits under section 10(10D)
- Premium amount subject to maximum of 10% of sum assured
- Term plan Separate section should be made for discount on
Pension tax free
- Income from annuity plan
- will be beneficial for senior citizens to become tax-free
- . Currently, annuity or pension is taxed.
- Pension principal and interest are taxed.
universal health insurance scheme
- Universal health scheme should be implemented in every state,
- this will increase the country’s GDP by 1.2%,
- all citizens will get the benefit of health insurance,
- it should be considered to increase the scope of the health scheme
