On July 22, 2024, Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-2024 in the Lok Sabha. The survey outlined critical issues within the insurance sector, highlighted by over two lakh complaints filed via the central grievance portal, many of which pertained to unfair practices by life insurers, though the Life Insurance Corporation of India (LIC) was notably excluded from these grievances.
Sitharaman emphasized the rampant issue of product misselling in the insurance industry and stressed the importance of prompt and fair settlement of insurance claims to boost insurance penetration. The Economic Survey noted that addressing misselling and compensating for resulting losses is crucial for maintaining good business practices.
As the Union Budget 2024 approaches, industry leaders like Rakesh Jain, CEO of Reliance General Insurance, are advocating for measures to improve the sector. Recommendations include increasing tax exemptions on health insurance premiums to INR 75,000, providing financial support for insurance on electric vehicles, offering tax benefits for cyber insurance, and mandating health insurance for all employees.
These steps aim to create a more resilient, sustainable economic environment and promote a healthier, greener future for India.
