Very few people buy personal accident insurance. This time in the budget, Finance Minister Nirmala Sitharaman can announce measures to increase people’s interest in Personal Accident Insurance. This work can also be done by giving tax exemption on this insurance product. Currently, only life insurance policy and medical policy are given tax exemption. Nirmala Sitharaman will present the budget to 1 February (Budget Date).
In the event of death, permanent disability, partial disability in Personal Accident Insurance Accident, Insited Person receives insurance amount. Its premium is quite low. A premium of about Rs 1,000-1,200 comes on the problem of Rs 10 lakh. However, the premium amount can be reduced according to the variety of the cover. But, despite low premiums, people do not consider it necessary to buy it. Whereas every year, many families face problems due to death or disability in accident.
In the year 2020, around 3.74 lakh people died in the accident. This information is based on data from the National Crime Records Bureau. The share of 18 to 45 years of total deaths was more than 55 percent. This shows how important it is to take an accident insurance cover. Anil Kumar Aggarwal, MD of Shri Ram General Insurance, said that it is legally necessary for all train owners to take a personal accident cover. This motor is part of third party insurance, which is necessary to take while purchasing the car.
Finance Minister Nirmala Sitharaman should announce a separate tax exemption for personal accident policy in the budget. Currently, there is a separate tax exemption under Section 80D of Income Tax on the health policy. People’s interest in buying it will increase in buying it on a personal accident cover.
This time the Finance Minister needs to reduce the rate of GST on insurance premium in the budget. Currently, GST is imposed at the rate of 18 per cent on the premium of insurance policy. This increases the premium of the policy greatly. Many people avoid buying insurance policy due to more premium. If it is reduced to 5 percent, the total amount of premium will be reduced. This will increase people’s interest in insurance products.
