LIAFI-SG/CG-145/14 30 December 2014
Shri. Arun Jaitely,
Minister of Finance,
134, North Block,
NEW DELHI-110 001
Sub: Pre-budget Discussions-Our suggestions-Reg
We are happy that you are discussing with various stakeholders and concerned before finalizing Budget Proposals for the Financial Year 2015-16. Though our Federation represents 12 lakh LIC Agents which is a registered organization was never invited for Pre-Budget discussions. We desire to submit our views and feedback on insurance industry especially on LIC which is major contributor for nation building.
Despite 24 Life Insurance Companies operating in this country we feel that only 24% of insurable population is insured if number of lives are taken into consideration. LIC Management will always project figures basing on number of policies.
Kindly consider the following suggestions:
1. To improve the Life Insurance penetration in India exclusive exemption under Sec. 80C shall be provided and the limit should be Rs. 2 lakhs.
2. To improve the Health Insurance penetration the present tax benefit under Sec. 80C shall be increased to Rs. 50,000/-.
3. To invite more investments in Pension Funds under Sec. 80CCC the tax benefits shall be separate.
4. Service Tax on Life Insurance policies shall be removed. The investors are calculating their returns treating the amount paid on Service Tax also as an investment.
5. Introduction of TDS is not liked by each and every one. Deduction of 2% TDS for PAN Card holders and Rs. 20,000/- for non PAN Card holders is causing lot of heart burn among the policy holders. The rural policyholders are worst sufferers.
6. All sections of LIC Policyholders are not at all happy with the returns they are getting.
7. The portfolio of Varisht Pension Bima Yojana shall be removed from purview of LIC.
The Government of India is aware of the contribution of LIC towards the nation building. Of late we feel that this establishment is not functioning up to the mark. Unless some effective steps are taken this GOLDEN GOOSE may reach to its end. We are very much worried at the prevailing atmosphere in LIC.
We humbly request you to consider our views and also invite us for discussions.
Thanking you, Sir
For Life Insurance Agents Federation of India
POSTED 0N 30/12/2014 BY SECRETARY,LIAFI,COIMBATORE DIVISION