By Subhash Nagpal

Union Budget 2019 India: Finance Minister Nirmala Sitharaman will present her maiden budget Friday morning. She is expected to announce various reforms to reinvigorate the economy. Insurance sector plays a key role in the development of the country. And it is one of the sector that needs sweeping reforms, including an increase in the FDI investment ceiling to ensure higher penetration of insurance products in the country.

Life Insurance companies are hopeful that finance minister Nirmala Sitharaman will increase the tax exemption limit for insurance policies in the Union Budget.

Separate Tax Exemption

Currently, life insurance premiums are tax exempted up to 1.5 lacs under section 80C of the Income Tax Act. It would be a welcome move, if the government announce separate tax exemption limits for life insurance premium. Additional tax sops as an increase in the exemption limit for the life insurance premiums paid will help to enhance insurance penetration.

Reduction in GST Rate

Goods and services tax (GST) is also one of the key points to include in Union Budget 2019. Be it term insurance, health, ULIP or other plans, insurance companies want it to cut down to nil. The insurance regulator IRDAI is also seeking the government to trim GST on insurance products. During her budget speech, Nirmala Sitharaman is likely to announce the GST vision of the government.

Increase in FDI Limit

Government of India is planning to announce 100% FDI in Insurance intermediaries that give this sector a big boost. Government is looking to achieve FDI inflow of US$ 100 billion. In the budget speech, Nirmala Sitharaman is likely to announce increase of FDI limit in insurance.

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Support through Government-run Programs

The government has taken various measures to ensure wider coverage to common masses to cover life & health-related uncertainties. Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance plan and Pradhan Mantri Suraksha Bima Yojana offers cover against accidental death & disability. Government has also launched various health insurance schemes such as Rashtriya Swasthiya Bima Yojana, Aam Aadmi Bima Yojana, Ayushman Bharat Scheme and many more.

In order to provide comprehensive cover to the people, the Government needs to shed more light on the Ayushman Bharat scheme and also enlist processes to fund and operate it a better manner. When it comes to corporates, employee health insurance should be made mandatory across industries and sectors.

Home Insurance

Insurance sector is also realizing the need to link Home Insurance to Home Loans that will cover your home against the risk of loss or damage that may be caused due to any catastrophe or unforeseen events. In the budget speech, finance minister is likely to announce the vision to link Home Insurance with home loans.

(Author is CEO and Founder of insurance product aggregator http://www.comparepolicy.com)