Budget 2018 gets thumbs up from insurance sector

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InsuranceUnion Finance Minister Arun Jaitley presented the annual budget 2018 in the Parliament on Thursday, making several major announcements comprising several sectors.

While the consumers across the country have mixed reactions pertaining to the general budget, for insurance sector it proved to be a major hit.

Delving into this crucial announcement, G. Srinivasan, Chairman and Managing Director, The New India Assurance explains several stands that made this budget a “positive” one for the insurance sector.

1) The National Health Protection Scheme announced is a great move to bring health
insurance to almost 40 per cent of the population and is move towards Universal health insurance. The scheme is significant as it provides Rs 5 lakhs cover to the family for secondary and tertiary treatments.

2) Extending the horizon of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) for covering larger population will bring insurance to more people. The announcement to provide micro insurance and pension schemes to Jan Dhan Yojana Accounts is very positive.

3) The merger of three public sector general insurance companies and listing them is welcome.

4) The various measures announced to improve the rural economy is very positive and it would help improve disposable incomes of vast majority of the population.

5) The thrust towards infrastructure development including Bharatmala scheme and developing Aviation infrastructure is very positive for the insurance sector.

6) The decision to increase 80D exemption limit for health insurance is positive and will lead to more health insurance penetration.

This article is contributed by G. Srinivasan, Chairman and Managing Director, The New India Assurance .

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