Economic Survey 2024: FM Sitharaman praises Life Insurance Corporation while sharing these IRDAI findings

Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-2024 in the Lok Sabha, highlighting key aspects of India's economic landscape. Concurrently, the Annual Report of IRDAI for FY23-24 underscored substantial challenges in the insurance sector. Notably, over two lakh complaints were lodged via the centralised grievance portal, with a significant portion targeting life insurers for unfair business practices, excluding the Life Insurance Corporation of India.

"Product misselling is too rampant to be dismissed as an aberration of a few overenthusiastic sales personnel. The same can be said of the insurance industry as well. Prompt and reasonable settlement of insurance claims and a lower rejection rate are necessary to increase insurance penetration. Acknowledging misselling and misrepresentation and compensating for consequential losses is a good business practice enjoined upon stockbroking, fund management, banking and insurance firms," the document noted.

Economic Survey 2024 Live Updates

The Union government tabled the Economic Survey 2023-24 in Parliament. The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, gives insights into the state of the economy and various indicators of 2023-24 (April-March) and some outlook for the current year.

With this upcoming budget presentation, Finance Minister Nirmala Sitharaman will surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister. Sitharaman's upcoming budget speech will be her seventh.

Budget 2024: Insurance Industry expectations

Rakesh Jain CEO Reliance General Insurance

“We commend the IRDAI's initiatives to prioritize the wellbeing of policyholders, from implementing cashless systems to emphasizing Ombudsman schemes, ensuring policyholders' interests are safeguarded. However, with increasing climate change and economic development-related risks, there is a pressing need to protect against unforeseen disruptions. The upcoming Union Budget 2024 presents an opportunity to promote sustainable development goals by prioritizing risk management and protection.

We recommend that the government consider the following measures:

•Increase the upper limit for tax exemption on health insurance premiums to INR 75,000.

•Introduce financial support or tax benefits for extensive insurance on electric vehicles (EVs).

•Give tax advantages for cyber insurance, particularly for small and medium businesses, to enhance their ability to withstand cyber risks and data breaches.

•Mandate health insurance to all employers for their employees to bring holistic protection to the working class.

Implementing these measures will not only create a more resilient and sustainable economic environment but also pave the way for a healthier and greener future, fostering a sense of optimism and progress.”