Quote by Mr. Arijit Basu, MD & CEO, SBI Life Insurance,
on Budget 2016 announcements:
 |
| Mr. Arijit Basu, MD & CEO, SBI Life Insurance |
“The Government’s
endeavour to educate the common man on the importance of having life security
related products like Life Insurance, Health Insurance has continued in this
year’s budget also.
The implications of
providing health insurance of up to Rs. 1 lakh per family and a top up of Rs.
35,000 for people above 60 years is that people will be more aware of the need
for insurance and Life Insurance companies can capitalize on the same.
The measures such as
withdrawal of up to 40% of the corpus at the time of retirement to be tax
exempt in the case of National Pension Scheme (NPS) and Annuity Fund which goes
to legal heir will not be taxable, are great incentives for people to inculcate
the habit of savings through pension schemes. This will provide a greater
thrust for Life Insurance companies to bring out more pension products that
will suit the needs of people. Also the reduction of Service Tax on single
premium annuity policies from 3.5% to 1.4% will help reduce the cost of the
policy, the benefits of which will be passed on to the consumers.
The Government has
outlined its focus on Growth, with major importance given to rural economic
development by providing better livelihood for the farmers and households below
the poverty line. This in turn will improve the likelihood of more people
getting out of poverty which will give the Life Insurance sector an opportunity
to focus on rural India as better livelihood will give rise to the need for
life insurance.”
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