Insurance has historically been a “push product” and despite the best efforts of the regulator and the various life insurance companies, it has failed to see pull from customers. One of the biggest incentives for buying insurance has been the tax exemption under section 80C of the Income Tax Act. In the Union Budget 2020, the Finance Minister introduced an alternative lower taxation regime wherein a taxpayer can choose a lower tax rate but will have to forgo most of the deductions they enjoy under the existing tax regime.
This has sparked a debate in the life insurance industry. One side believes that removal of exemptions will not have a detrimental impact on the insurance business in general as the customer has evolved over the years and understands that life insurance is mainly meant for protection and not as a tax-saving option.
The other side puts forth the argument that incentives in the form of tax exemptions have worked in driving up the penetration levels and the removal of it will have an impact on consumers. This is because the attractiveness of a life insurance policy will somewhat be diluted and the policyholders will have to be educated to make them aware of the importance of protection.
This story is from the March 19, 2020 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 19, 2020 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
NSE shares up after bonus, dividend
The National Stock Exchange (NSE), the country's top bourse, has seen its market value soar by nearly 85,000 crore to 3.21 trillion after declaration of a four-for-one bonus issue and dividend of ₹90 per share.
China is the story of moment in EM equities: Wood
Christopher Wood, global head of equity strategy at Jefferies, is turning bullish on Chinese equities and believes China is the story of the moment in the emerging market equity space as things stand.
Sebi cracks whip on 2nd SME, bars promoter for diverting IPO funds
The Securities and Exchange Board of India (Sebi) on Friday barred Varanium Cloud and its managing director for allegedly diverting funds raised through initial public offer (IPO) to other entities and other fraudulent practices, the second such action by the markets regulator within a week.
Spike in SIP churn as investors rebalance
Registrations rose 48% in April, account closures 42%; experts say rotation at play
Ensure donations claimed in tax returns match Form 10BE figures
Retain Form 10BE and related documents for at least 4 years to validate Section 80G claims
SBI remains a bankable bet for long-term gains
Seen rising 22% over next year, but rally could be gradual, given rich valuations
Ahead of Paris Olympics, will Schengen visa woes ease?
Ahead of the 2024 Paris Olympics, which begin on July 26, more and more Indians are charting out trips to the Schengen countries, but the going hasn't been smooth.
The case of 'missing' numbers in CSR data
Companies listed on the NSE spent a record ₹15,524 cr on CSR programmes in 2022-23
A NEW MAUL GAME
Batters are mauling bowlers this IPL like never before, as the impact player rule effectively gives every team 12 players. Where is it taking the game?
IIP growth slows to 4.9% in March
Drop comes on the back of slowdown in mining output SHIVA
