Life Insurance News

Indian life insurers have urged the government to raise the tax-free investment limit in long-term infrastructure bonds under Section 80C from Rs. 5 lakh to Rs. 10 lakh, aiming to stimulate demand and deepen the domestic bond market.

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Life insurers urge doubling of tax-free bond limit to Rs. 10 lakh

This proposal was submitted ahead of the upcoming Union Budget 2026, as part of pre-budget consultations.

The Life Insurance Council, representing the life insurance industry, believes that increasing the limit would encourage long-term savings while channeling funds into infrastructure development. Such a move, they argue, aligns with India's goals of financing capital-intensive projects and achieving sustained economic growth.

Insurers noted that the current Rs. 5 lakh limit restricts high-net-worth individuals from deploying more funds into tax-free bonds, reducing potential inflows into the long-tenor bond segment. A higher cap could also support the insurance industry's asset-liability matching efforts, which rely on long-duration investments.

Industry experts see this proposal as timely, especially with the government's increasing reliance on domestic capital for funding infrastructure.

Kotak Mahindra Life crosses Rs. 1 lakh crore AUM, marks 25-year milestone

Kotak Mahindra Life Insurance has surpassed Rs. 1 lakh crore in assets under management (AUM), celebrating this achievement as it completes 25 years of operations. The insurer has recorded a strong compound annual growth rate (CAGR) of 19% over the past 25 years, reflecting consistent performance and trust from policyholders.

Managing Director and CEO Mahesh Balasubramanian highlighted that this growth milestone aligns with the company's long-term vision of providing value-driven insurance solutions and strengthening financial security for Indian families. "We are proud to have achieved this landmark while maintaining customer-centricity, sound risk practices, and disciplined capital deployment," he said.