Insurance Sector: With the beginning of the financial year, there have been changes in many financial rules. Such a change has also happened in the insurance sector. Let us know about these changes.
Insurance Sector New Rules: With the beginning of the new financial year (Financial Rules Changed From 2023-24) on April 1, there have been major changes in many financial rules. This includes many changes related to the insurance sector (Insurance Rules).
From this financial year, you will not get the benefit of Tax Rebate in any way on the premium of a particular type of insurance. Along with this, many major changes have also been made in the limit of insurance expenses and commission. In such a situation, if you are also going to buy a new insurance policy in this financial year, then it is very important to get information about these changes.
Tax to be paid on premiums above Rs 5 lakh
Significantly, with the beginning of the new financial year, customers will have to pay more tax if they invest in policies with higher premiums. The thing to note is that earlier investors did not have to pay any kind of tax on this.
But now investors will have to pay tax on the premium amount of more than Rs 5 lakh annually. It is worth noting that IRDAI has kept Unit Linked Insurance Plan (ULIP) out of this new income tax rule. In such a situation, you will continue to get the benefit of tax exemption even on ULIP premiums of more than Rs 5 lakh per annum.
This change in commission
Insurance regulator IRDAI has changed the limit of management expenses and commission, which has been implemented from today. IRDAI, while changing its rules, has decided to remove the limit on insurance commission agents or aggregators. Earlier, IRDAI had proposed in its draft that the commission should be kept up to 20% of the total expenditure. Now this limit has been removed. Now the insurance companies can determine this themselves.
