Hopes pinned on government reforms to uplift condition of Indian insurance sector

To ensure optimal protection of finances while overseas, an appropriate insurance cover is extremely essential.
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Mumbai, India (prHWY.com) March 16, 2013 - To ensure optimal protection of finances while overseas, an appropriate insurance cover is extremely essential. In order to make a well-informed purchase, it is essential for the buyer to stay abreast with the developments in the insurance and investment sector.

Today, purchasing travel insurance online has become extremely convenient and a majority of young, tech savvy buyers rely on the internet to secure their policy. Insurance companies offer two types of travel covers, one for international travel (holiday or business travel) and one for students which is mandated by all foreign universities.

The coverage offered by both these covers differs greatly but generally takes care of several medical and non-medical exigencies which may cause an unexpected loss of finances in a foreign country. Unlike medical insurance, buying a travel insurance cover or a student insurance policy will not qualify your taxable income for rebate. Elaborating on this, Bhargav Dasgupta, managing director and CEO, ICICI Lombard General Insurance, said the expectation from the Budget included increasing the section 80D exemption limit for health insurance as well as bringing segments such as home, personal accident and travel insurance within the ambit of the tax exemption clause. "This should encourage more customers to avail of such products, enabling them to transfer unforeseen risks at a minimal cost," he said.

Non-life insurers are soliciting for the budgetary provisions to consider both life and non-life insurance providers with equal parameters. Industry players stated that general insurance companies were subject to minimum alternate tax (MAT) while the life insurance companies were exempted from the same. There is thus, a plea for removal of MAT for general insurance companies. They have also appealed for equal treatment with life insurance providers as far as taxation of capital gains is concerned.

For both life and non-life insurance, Foreign direct investment (FDI) is a bone of contention. Industry sources opine that fresh FDI is essential to enhance the current state of the insurance sector so that Indian customers get access to world class products like better life insurance coverage, easily acceptable student insurance covers or the hassle-free availability of options when purchasing motor, health or travel insurance online.

According to a well-placed insurer, "Delay in enabling this has clouded further investments in the sector. We are hoping all political parties will look at the FDI limit in an overall perspective and encourage the growth of the insurance industry in the country."

From the looks of it, hopes for the overall improvement of the Indian insurance sector rely heavily on the promptness and effectiveness of proposed government reforms.


Tag Words: travel insurance online, student insurance
Categories: Insurance

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