InvestorQ : Could we see higher allocation towards health, life insurance FY21-22?
Sneha Balasubramanian made post

Could we see higher allocation towards health, life insurance FY21-22?

1 year ago
Given the unexpected turn of events in the year gone by, the one thing we have definitely learnt is to be cautious and proactive about our health. And one of the way to ensure that we get access to the best facilities for our health is to get insured. The regulatory framework has been extremely supportive in 2020 during the pandemic to ensure that insurers expedite COVID claims and do not reject the same without proper due diligence. The IRDAI introduced the standardization of health insurance products with Arogya Sanjeevani and also initiated the quick launch of Corona Rakshak and Corona Kavach plans with very affordable premiums to provide coverage to a higher number of people. However, majority of the people in the country are either uninsured or underinsured.

Any measures by Finance Minister Nirmala Sitharaman to improve this situation will be a step in the right direction. This will peak people’s interest in insurance and hopefully, increase the amount of policy-holders in the country. Increasing section 80C and 80D limits could help in increasing the insurance penetration further across the country. Also , a tax based incentive targeted at companies who provide free or cheap health and life insurance to disadvantaged and poor communities could be a big boost for the country as a whole.