With the current level of under-penetration, the key task at hand is to make term insurance more affordable for the masses and lucrative for taxpayers. We, therefore, propose to ease off the tax burden of 18% on term insurance policies and bring down the GST rate in the range of 2-5% to benefit end users. We propose a separate section under the income tax act which allows individuals to opt for an additional deduction over and above 80C for investing in a Life Insurance policy. With an increase in re-insurance premiums amidst the pandemic, there is also a need to provide enhanced deduction for insurance premium irrespective of the taxation regime opted by individuals/ HUF. This will reduce the social security burden of the Government,тАЭ Parag Raja, MD & CEO, Bharti AXA Life Insurance.
