Removal of FBT to give boost to annuation funds

Jayant Khosla, MD & CEO, Future Generali India Life Insurance Company Ltd

The removal of FBT is going to give a boost to super annuation funds which were very adversely affected by introduction of FBT a couple of years ago. This will enable Life insurance companies to generate new business from corporate pension schemes.
 
The government has taken a series of personal tax reduction measures, which will facilitate the common man to have more access to funds thereby, increasing personal savings & investment. This will have a positive impact on the insurance industry.
 
Further the added emphasis on infrastructure development would provide life insurers insurance opportunities for long-term investment. However, the budget has not addressed market expectations of increase in FDI limit from 26% to 49% in the insurance sector. We hope it hear positive development on this announcement soon.