‘Trying to convince people to take LIC for insurance purposes,’ says LIC chairman MR Kumar
LIC chairman MR Kumar said having life insurance was considered lucrative 4-5 years back due to section 80C of the tax regulations, which was reserved only for insurance policies.
- Feb 10, 2023,
- Updated Feb 10, 2023 4:30 PM IST
Chairman of public insurer Life Insurance Corporation of India (LIC) MR Kumar said that the company is trying to convince more and more people to take LIC insurance policies for insurance purposes and not as a means to save on tax. He added that having life insurance was considered lucrative 4-5 years back due to section 80C of the tax regulations, which was reserved only for insurance policies.
Kumar told Business Today in an exclusive interview, “We all know that in the last 4-5 years, tax planning is slowly going on in the minds of people for the simple reason that life insurance, 4-5 years back, was in 80C under the tax regulation which was only available for insurance but then it got expanded to other financial instruments as well. So, consciously, we have been moving away from the tax impact and ensuring that people buy insurance for the safety and protection it provides.”
During the course of the interview, Kumar added that LIC aims to reach out to more and more younger insurance buyers with its offerings as the younger generation is looking at insurance as financial protection, especially when it comes to term cover before they purchase any other financial product. Kumar also clarified that not every insurance buyer buys insurance for tax purposes.
Kumar noted, “Going forward, I think the insurance market will be free of, I would say, the tax burden.” The LIC boss added that agents don’t tell people that they need to buy insurance if they have to pay tax while stating that we tell people that they must buy insurance if they need it. He furthermore stated, “It is more of a need-based selling now more than something else around it.”
Commenting on the cost of insurance from a customer’s perspective, he said that some concessions on taxation pertaining to insurance is necessary as it is not a luxury item like jewellery or perfume that can be exorbitantly taxed.
Also watch: LIC chairman MR Kumar on investment into Adani Group following Gautam Adani-Hindenburg row
Also read: LIC sold 50,000 Jeevan Azad policies in 10-15 days: LIC Chairman MR Kumar
Chairman of public insurer Life Insurance Corporation of India (LIC) MR Kumar said that the company is trying to convince more and more people to take LIC insurance policies for insurance purposes and not as a means to save on tax. He added that having life insurance was considered lucrative 4-5 years back due to section 80C of the tax regulations, which was reserved only for insurance policies.
Kumar told Business Today in an exclusive interview, “We all know that in the last 4-5 years, tax planning is slowly going on in the minds of people for the simple reason that life insurance, 4-5 years back, was in 80C under the tax regulation which was only available for insurance but then it got expanded to other financial instruments as well. So, consciously, we have been moving away from the tax impact and ensuring that people buy insurance for the safety and protection it provides.”
During the course of the interview, Kumar added that LIC aims to reach out to more and more younger insurance buyers with its offerings as the younger generation is looking at insurance as financial protection, especially when it comes to term cover before they purchase any other financial product. Kumar also clarified that not every insurance buyer buys insurance for tax purposes.
Kumar noted, “Going forward, I think the insurance market will be free of, I would say, the tax burden.” The LIC boss added that agents don’t tell people that they need to buy insurance if they have to pay tax while stating that we tell people that they must buy insurance if they need it. He furthermore stated, “It is more of a need-based selling now more than something else around it.”
Commenting on the cost of insurance from a customer’s perspective, he said that some concessions on taxation pertaining to insurance is necessary as it is not a luxury item like jewellery or perfume that can be exorbitantly taxed.
Also watch: LIC chairman MR Kumar on investment into Adani Group following Gautam Adani-Hindenburg row
Also read: LIC sold 50,000 Jeevan Azad policies in 10-15 days: LIC Chairman MR Kumar