Union Budget 2021-22 Expectations for Insurance: The coronavirus pandemic has brought the government’s interest more towards the healthcare sector. The expenditure on healthcare, overall health insurance coverage, and other associated debates have turn out to be the epicentre of policy choices considering the fact that the pandemic hit India. Even prior to the pandemic, overall health insurance coverage was a expanding sector, nonetheless, the pandemic has proved the indispensable nature of obtaining a security net when it comes to healthcare fees. This, on other hand, has also raised the need to have for tax impetus on individual’s expenditure on overall health solutions.
Tax relief on insurance coverage
“It becomes important to increase the limits defined for mediclaim premium tax deduction under section 80D of the Income Tax Act to Rs 1 lakh (Rs 50,000 for self & spouse + Rs 50,000 for Parents),” stated Mayank Bathwal, CEO, Aditya Birla Health Insurance. It is also important to reintroduce the healthcare reimbursement with a larger limit of Rs 50,000 tax deduction, which got merged in common deduction in the course of the finance spending budget 2018, Mayank Bathwal added.
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Increasing FDI beyond 49%
The effect of the coronavirus in the year 2020 has also led numerous Indian promoters to face challenges, which has substantially impacted the development and improvement of the insurance coverage sector. However, foreign promoters are in a comparatively greater position to enhance their stakes beyond 49 per cent, but are constrained by the regulatory restriction of foreign investment limit.
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“While Indian Promoters of insurance companies, including banks, are at different stages of their return to normalcy, an increase in the FDI in the insurance sector beyond 49 per cent would immediately help the strong growth of the insurance industry and propel it to the next level,” Rakesh Wadhwa, CMO, Future Generali India Life Insurance, told TheSpuzz Online. Especially in life insurance coverage, which is capital intensive, it would assist the insurance coverage providers to come back on track vis-à-vis their strategic strategy, Rakesh Wadhwa added. Increasing FDI beyond 49 per cent at this juncture will, as a result, be a step in the proper path, he additional stated.