‘Insurance market will be free of tax burden’: LIC Chairman MR Kumar
LIC Chairman MR Kumar in an exclusive interview to Business Today said that in the future insurance market will be free of tax burden because the preferences of the younger generation is shifting.
- Feb 10, 2023,
- Updated Feb 10, 2023 4:39 PM IST
Life Insurance Corporation Chairman MR Kumar has said that the insurance market will, in the future, become free of the tax burden. He believes that the younger generation do not buy insurance just to receive tax rebates. Kumar said that the younger generation buys insurance as a protection, as against a tax saver.
In an exclusive interview with Business Today TV Managing Editor Siddharth Zarabi, Kumar said, “If you look at the younger generation, they are really looking at insurance as protection, a financial product before they get into other financial products. We see that happening in the term cover.”
“Not everyone is looking at buying insurance as a tax saver. And since the new tax regime will not get that benefit -- in fact many might not even require the benefit because they are not looking at tax rebate at all while investing in mutual funds and insurance and other financial instruments. So going forward, I think the insurance market will be free of tax burden,” he said.
Kumar said that they don't have to go to people and say ‘you have to pay tax, buy insurance’. They are now telling people that they should buy insurance because they need it. “It is more of a need-based selling now more than something else around it,” he said.
The LIC Chairman said that they are trying to get more people to buy insurance policies for insurance purposes. Kumar also said that people are gradually thinking more and more about tax planning.
Kumar also spoke about the Adani crisis and the life insurer’s exposure to it. He said that shareholders and policyholders need not worry about the exposure as there is “not even 1 per cent risk”. He said that it is not a big deal, and is more like a “drop in the ocean”.
Also read: ‘Trying to convince people to take LIC for insurance purposes,’ says LIC chairman MR Kumar
Life Insurance Corporation Chairman MR Kumar has said that the insurance market will, in the future, become free of the tax burden. He believes that the younger generation do not buy insurance just to receive tax rebates. Kumar said that the younger generation buys insurance as a protection, as against a tax saver.
In an exclusive interview with Business Today TV Managing Editor Siddharth Zarabi, Kumar said, “If you look at the younger generation, they are really looking at insurance as protection, a financial product before they get into other financial products. We see that happening in the term cover.”
“Not everyone is looking at buying insurance as a tax saver. And since the new tax regime will not get that benefit -- in fact many might not even require the benefit because they are not looking at tax rebate at all while investing in mutual funds and insurance and other financial instruments. So going forward, I think the insurance market will be free of tax burden,” he said.
Kumar said that they don't have to go to people and say ‘you have to pay tax, buy insurance’. They are now telling people that they should buy insurance because they need it. “It is more of a need-based selling now more than something else around it,” he said.
The LIC Chairman said that they are trying to get more people to buy insurance policies for insurance purposes. Kumar also said that people are gradually thinking more and more about tax planning.
Kumar also spoke about the Adani crisis and the life insurer’s exposure to it. He said that shareholders and policyholders need not worry about the exposure as there is “not even 1 per cent risk”. He said that it is not a big deal, and is more like a “drop in the ocean”.
Also read: ‘Trying to convince people to take LIC for insurance purposes,’ says LIC chairman MR Kumar