|
|
|
Budget Impact on Insurance sector neutral
- Premium paid to all insurance companies that
have been approved by the Insurance Regulatory and Development Authority will
also be eligible for deduction under section 88.
- Taxpayers having income less than Rs 100,000
will be eligible for rebate up to 30% under section 88. This would encourage
more investment by small taxpayers in insurance policies.
- Taking into consideration the huge success of
the Kisan Credit cards (KCC) the Finance Minister has asked banks to provide
insurance cover to the KCC holders within the next 3 years. The cardholder
should be covered against accidental death or disability up to a maximum amount
of Rs 50,000 and Rs 25,000 respectively. The insurance premium has to be borne
by the card issuing authority.
- A new scheme has been introduced viz, "Ashraya
Bima Yojana" with the objective of providing compensation up to 30 %
of last drawn annual pay for a period of one year to retrenched workers. Under
this scheme, it has been proposed to cover all employees drawing salary up
to Rs 10,000 per month. Complete details of this scheme are to be announced
by Jun 01 by four Government owned general insurance companies that will administer
the scheme on "No Profit No Loss" basis.
- Two schemes, to be administered by Life Insurance
Corporation of India have been proposed to benefit the poorest section of
society.
1."Khetihar Mazdoor Bima
Yojana":
This will offer the benefits of insurance
cover as available under "Jayshree Bima Yojana" declared in last
budget and will also provide a pension of Rs 100 to the beneficiary after
his attaining 65 years of age.
2. Shiksha Sahyog Yojana
Under this scheme, subscribers to "Jayshree
Bima Yojana" will be given an educational allowance of Rs. 100 per
month to meet the expenses of education of the children from 9th
to 12th standard.
- Insurance Regulatory Authority has been asked
to examine the needs & methods of providing adequate social security to
the unorganised sector and offer its recommendations by 01/08/01.
|
