FROM THE C-SUITE. Budget: A shot in the arm for insurance

CEO, Tata AIG General Insurance

The Union Budget 2014-15 did open doors for insurers to widen their reach in the country. The announcement about 49 per cent in the insurance sector is a welcome initiative. Once approved, this would encourage foreign investment and will further augment free flow of knowledge and intellectual cross fertilisation, benefiting the insurance sector as a whole; right from product innovation, distribution and in building robust customer service mechanisms.

The Finance Minister Arun Jaitely announced various initiatives that will supplement the insurance industry at large. The proposal of setting up four AIIMs and 12 government medical colleges will ensure improvement in the quality of medical education and will provide consumers with easy access to medical facilities.

In the rural sector, investments in agriculture and MSME sectors were needed and encouraging private equity investments will prove to be a boon to the overall economic development of the country.

The increase in the 80C tax slab from Rs 1 lakh to Rs 1.5 lakh will give the industry an additional boost and will enhance growth as more consumers will consider investing in health and life insurance products.

Overall, the Union Budget announcements and efforts thereof will provide impetus to the insurance industry to widen the reach and distribution network. We believe that with the Budget’s strong focus on small towns and rural areas, the end-customer will gain through the wider reach of insurance in these sections and territories.

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