PUDUCHERRY: General insurance companies have sought income tax (IT) rebate for health insurance on the same lines as IT exemptions given for life insurance by the Life Insurance Corporation of India.
Stating this at a press conference her, A K Saxena, chairman -cum-managing director of The Oriental Insurance Company Ltd, a public sector undertaking, said that through the general insurance council, the matter has been taken up with the government of India. The company is also planning to introduce new products for health Insurance, he added.
Besides, the council is requesting the government to give financial benefit for the catastrophic cover policy taken up by people. Such a policy would be useful when a natural disaster strikes , where the insurance company would pay the compensation, which would be a relief for the government as well, he said.
Saxena revealed that a long- term third party insurance policy for two-wheelers with a three-year term has been launched recently. This means, two- wheeler owners would not have to renew their motor insurance every year. He said that at present of the 30 per cent of the vehicles on the road, majority of them are two wheelers which do not have vehicle insurance and also expressed the need for bringing such vehicles under the insurance net through the policy.
Addressing the fallout after raising of cap on Foreign Direct Investment in the insurance sector to 49 per cent, Saxena said the scope for the insurance sector was good with the market expanding in double digits . The competition has increased, but the public sector insurance companies have the confidence of the public, especially those in rural areas. The company, Saxena said, has seen a growth of 9 per cent in the last fiscal with a premium of `7282 crore and 5 per cent growth this year upto December 2014. The company has to adopt a conservative approach, build its assets up and also implement the Jeevan Bima policies under the social sector schemes of the government with lower rate of premium.