During fiscal 2018, total gross premiums for the non-life and life insurance sectors grew 11.5 percent to Rs 6.1 lakh crore (USD 94 billion), bringing the 5-year compound annual growth rate (CAGR) to 11 percent.
Big Deal showcases - consolidation in the insurance sector, Aditya Birla Group announces a major recast of its businesses, and Tata Chemicals sells urea business to Yara. CNBC-TV18 tells you what the impact will be on the concerned companies.
"No Indian Insurance company shall allow the aggregate holdings by way of total foreign investment in its equity shares by foreign investors, including portfolio investors, to exceed forty-nine percent of the paid up equity capital of such Indian Insurance company," it said.
Service tax on insurance premium should be abolished. Also income tax on annuities for annuitants above certain age should be tax free.
We expect increased push in the budget towards creating a universal healthcare ecosystem built on facilitating healthcare financing, instead of investing on its own healthcare facilities.
The comments come days after Cognizant indicated a possible dip in revenues in 2016 due to difficulties it is facing in the BFSI and healthcare sectors.
"More than Rs 12,000 crore is set to flow in the insurance sector comprising both life and non-life during 2016. Besides, re-insurance sector would also see some fund flow as it too has got a leg-up through the amended Act," Assocham Secretary General D S Rawat said in a statement.
Inoperative bank accounts must be attended to. Banks generally close internet banking, ATM, phone banking and such other facilities on such account.
RBI is scheduled to come out with its fourth bi-monthly policy review for the fiscal on September 29 and with uncertainty getting over with regard to the US Fed rate, the central bank may yield to the pressure of easing rates.
At present, 100 percent foreign investment is permitted through the government approval route in the tea plantation sector. However, FDI is not allowed in any other plantation sector or activity.
India's natural rubber import increased to 442,130 tonnes in 2014-15, the highest so far, from 3,60,263 tonnes in 2013-14 and 2,62,753 tonnes in 2012-13. The production of natural rubber declined to 12-year low at 6,45,000 tonnes in 2014-15 as against 774,000 tonnes in 2013-14, down 12.
Predictions from insurance groups and independent economists have put new FDI inflows to India from the investment cap increase anywhere from USD 2 billion to USD 10 billion.
The RBI notification follows DIPP, Commerce Ministry's press note in March regarding operationalisation of increased FDI limit of up to 49 percent in the insurance sector.
Hiring in the banking, financial services, insurance sector also jumped by 38 percent . The report said the sector ranked second in terms of long-term gain.
The sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received foreign direct investment (FDI) worth USD 1.59 billion during April-December, 2013-14, according to the Department of Industrial Policy and Promotion (DIPP).
The hike in foreign direct investment (FDI) limit in the insurance sector was allowed through an Ordinance issued last year-end. A Bill to replace it is likely to be presented in the Lok Sabha on Tuesday.
The session, which will begin on February 23 and conclude on May 8, will see presentation of the first full-fledged budget of the Narendra Modi government which came to power in May last year.
CNBC-TV18's special show Accelerate India takes a look at the banking, financial services and insurance sector in India to understand how technology is deployed across companies to keep up with the demands of the discerning customers.
Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvITs) would also get tax incentives. Along with foreign investors, domestic institutions like insurers, pension funds and provident funds would also be allowed to invest in these trusts.
After hanging in balance for over six years, hike in foreign investment cap for insurance sector has become a reality, although the government had to take ordinance route, as a bill in this regard could not go through Parliament.
Calendar year 2014 brought in changes like increase in FDI, changes in ULIP guidelines, insurance repository among others. Next five years can see double digit growth which will bring this sector to a new level.
Bimal Jalan, Former Governor of the Reserve Bank feels it is good for the insurance sector and for the people who buy insurance. There are no two ways, as it simplifies the whole thing. If u look at the system abroad, it is that kind of a system. Money is money.
Underlining that growth would depend on the states, he talked about cooperative federalism and announced release of Rs 11,000 crore to states in the current fiscal as part payment towards CST compensation to facilitate roll-out of the Goods and Services Tax (GST).
With the new government‘s stress on reforms, steps taken by IRDA to make insurance more consumer-friendly and India‘s favourable demographic, the future of India‘s insurance industry looks good
According to the audit, many insurance companies wrongfully availed of the central value-added tax (CENVAT) scheme to avoid taxes on certain services.