Shashwat Sharma, Partner - Advisory, KPMG

 > Raising the cap on FDI: Given the capital intensive nature of insurance business , raising the cap on FDI to 49% will provide incentive to foreign companies to invest in the JV company.

> Separate limit for life and health insurance premiums: There is a need to set a separate limit of INR 1 lakh for life and health insurance premiums. This would help improve insurance density (India- USD 55.7 ; China-USD 158.4) which continues to be low amongst emerging markets.

> Service tax exemption on term and health insurance products: In virtual absence of a government backed social security and rising health care costs, there is a need to provide incentive to build a safety net. Exemption of service tax on term products for life and health insurance premiums up to INR 10,000 can help achieve the same.

> Service tax exemption on preventive checkups: Preventive health checkups should be exempted from service tax. Rise in lifestyle diseases are posing a fresh challenge and preventive checks can provide timely intervention.