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12-point action plan of Government for life Insurance

According to Finance Minister P. Chidambaram, a package for the life insurance sector was prepared by the government. This measure is meant to give advantage on companies as well as policy holders. This will surely encourage people to go for life time insurance. Also, it would help insurance companies to offer their service better. Some of the general issues on this action plan are as follows.

LIC Logo Life Insurance Corporation

LIC Logo Life Insurance Corporation

First, banks can become brokers for offering bouquet of life insurance products. Selling micron insurance products will not be allowed to all banking correspondents. Mentoring agents can now be appointed by insurance companies.  Aside from these general issues there are also some taxation issues on this plan. For first year regular premium as well as single-premium policies are deducted on service tax.

When it comes to insurance schemes for service tax it is exempted from tax. Though there are a lot of things that you have to consider and check on this kind of plan, the main purpose of it is to make the people feel that the company is doing something to help them.

Read More plan points at: thehindubusinessline.com/industry-and-economy/banking/article3954582.ece

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