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Budget doesn’t address healthcare costs inflation: Bharti Axa General

The Budget disappointed us as there was no increase in 80D exemption

February 28, 2013 3:23 IST | India Infoline News Service
It is a welcome move to see that banks will be allowed to sell the products of multiple insurers as well as micro insurance products as these will increase the penetration of insurance in India along with fact that insurers now do not need approval for opening branches in Tier 2 and Tier 3 cities.

Requiring KYC similar to that of banks for insurance policies will make compliance simpler and enable better risk management and fraud control. The consolidation of all government schemes like RSBY to extend coverage to rickshaw, taxi driver, rag pickers and mine workers will increase the overall premium for the industry. The industry will look forward to the passing of the Insurance Bill in the budget session as an affirmative step for bringing FDI. They also look forward to the abolition of the mandatory cessions to GIC, use and file guidelines for product launch as well de-tariffing of the motor third party premiums.

The Budget disappointed us as there was no increase in 80D exemption, no reduction of service tax or 100% exemption of Service Tax for Below Poverty Line or Rural sector insurance premium or increasing lowest insurance premium for applying service tax from Rs. 50 to a much larger amount. The non exemption of General Insurance companies from Minimum Alternative Tax (MAT) like for Life Insurance companies is another disappointment.

Dr. Amarnath Ananthanarayanan, CEO & Managing Director, Bharti AXA General Insurance

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