Life Insurers' Budget Wishlist: A Push for Inclusive Coverage

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Posted by AI on 2026-01-23 08:52:34 | Last Updated by AI on 2026-02-06 03:00:07

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The life insurance sector in India is gearing up for the upcoming Union Budget 2026, with a clear agenda to make insurance more accessible and appealing to the masses. Tarun Chugh, the Managing Director and CEO of Bajaj Allianz Life Insurance, has put forward a compelling case for tax parity and enhanced affordability, measures he believes will significantly boost life insurance coverage, especially in rural areas.

Chugh highlights a critical issue: the disparity in tax treatment between insurance policies and other financial instruments. Currently, the maturity proceeds of life insurance policies are taxed if the annual premium exceeds a certain limit. This, he argues, discourages individuals from opting for higher coverage, particularly those in rural areas where insurance awareness and affordability are already challenges. By advocating for tax parity, Chugh aims to make insurance more attractive, encouraging people to invest in comprehensive protection for their families.

The proposal for tax parity is not just about numbers; it's a strategic move to bridge the protection gap in India. With a predominantly young population, the country has a vast potential market for life insurance. However, the current tax structure may deter many from purchasing adequate coverage. Chugh's suggestion to amend the tax rules could be a game-changer, making life insurance a more viable option for millions. This push for inclusivity in insurance coverage is a significant step towards a financially secure future for India's diverse population.

As the Union Budget approaches, the life insurance industry eagerly awaits the government's response to these proposals. The potential impact on the sector and the broader economy is significant, with the promise of increased financial security for individuals and families across the nation.

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