Budget 2022 Expectation: Finance Minister Nirmala Sitharaman will present the budget on 1 February 2022. From now on, all the sector is sending their hopes to the Finance Minister regarding the budget. There are several demands of the insurance industry for Budget 2022, including a decrease in GST at insurance premium, excluding life insurance from Section 80C, dual tax removal in case of annual payment, etc.
The Insurance Sector is going through a change in the era of Korona epidemic. In the time of Kovid -19, both awareness and access to insurance have increased. This awareness about insurance has not happened through the campaign that has been going on for years, as it was in Kovid’s time.
According to industry experts, budget 2022 has increased the need to strengthen healthcare, focus on local infrastructure manufacturing and overall economic development.
There is a demand to separate insurance from 80C
Life insurance industry is demanding to separate life insurance in the cuttings under Income Tax 80C. Currently, all saving options are added to the same section 80C in the current system and its limit is Rs 1.50 lakh. HDFC Life Insurance MD and CEO Vibha Padalkar said that life insurance should be excluded from 80C so that its reach can increase further. For this, a separate category tax should be made in saving as the demand for life insurance has increased during the time of Kovid.
Subrajit Mukhopadhyay, Executive Director of Edelweis Tokyo Life Insurance, said that a separate section will help to separate customers’ funds in long periods and short periods.
According to industry experts, 18 percent GST can be reduced on insurance premiums. This will help in making life insurance cheaper and its access will increase in the lower classes.
According to Tapan Singhal, MD and CEO of Bajaj Allianz General Insurance, the premium of the policy plays an important role in the customer’s purchase decision. 18 18 percent of GST makes the premium expensive, so that people do not choose the right coverage. The government will benefit both the industry and the customer by reducing GST.
