The insurance industry is seeking a level-playing field with the National Pension System (NPS) with a tax exemption for annuity products of insurance companies to make them more competitive.
Companies argue that a tax exemption for investments in pension schemes will increase their pull to investors, helping deepen insurance penetration as it can be bundled with a life cover.
“There is a case to make pension plans from insurance companies on a par with NPS which has a separate limit. Globally, we have seen that separate tax saving limits for insurance goes a long way in increasing penetration and India is no exception,” said Tarun Chugh, CEO Bajaj Allianz Life Insurance.