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From income tax benefits for premiums on house property insurance, to crop insurance risk estimation using new technologies like artificial intelligence, there are various measures that the finance minister can introduce in the Budget, to give a boost to the insurance sector.
Here are some of the challenges in the insurance sector, and how the government can address them in the Budget.
Challenges of the insurance sector:
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How can the Budget address challenges in the Insurance sector?
How can common people benefit from the expected announcements
Everybody is expecting some relief in GST rates for insurance which is a high priority sector for the government. No country has become a developed nation without a solid base of Insurance which is stable and well regulated. The government should consider a GST relaxation in the micro-insurance area as well. If all the above measures are announced in the Budget by the government, then the overall insurance premiums will get cheaper, claims will be broad-based and the penetration of insurance will increase – thereby giving more avenues of tax realisation by the government in a constructive way.
Views are personal.
The author is partner & leader – PwC India.
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