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Home / Insuremagic Exclusives

My Budget Wishlist
S. B Mathur,
Chairman, Life Insurance Corporation

1. What are your hopes from the coming budget bring for the insurance sector?
   
   The Government has already taken all possible steps to give impetus to insurance business and boost up for savings through insurance policies. We feel and hope that the incentive will continue.
   
   
2. What changes will the Budget 2003-04 bring for pension products and annuities?
   
   There may be increase in the exemption available under Section 80CCC(I) to encourage people to save for their future.
   
   
3. How far according to you will the Finance Minister increase the tax exemption for annuities and pensions from the present Rs.10,000/- and also the Section 88 benefits?
   
   There may be some rationalisation under Section 88 in view of the Kelkar Committee's recommendations.
   
   
4. What will be the implications of the Kelkar committee report?
   
   Insurance segment under I.T. net is only 15 to 20 per cent of the insured population. As such Kelkar Committee's recommendations may not have much implications on insurance sector. People may go in for risk cover like Term Assurance, double, triple risk cover plans on higher side as compared to conventional type of plans like Endowment and Money Back.
   
   
5. What are your overall expectations from the budget?
   
   The coming budget is expected to be growth oriented giving boost to industrial production and motivating services sector, thus giving impetus for employment,
   self-employment, small-scale business. Capital market is expected to be buoyant.



6. How far will the recent entry of intermediaries in the insurance sector boost risk cover sales?
   
   The hitherto untapped or under-tapped market will be covered by these intermediaries and will give definite boost to coverage of masses through various group schemes.



7. How many policies have you sold this fiscal and what is your market share?
   
   The number of policies sold in this fiscal upto January, 2003 is 1.50 crore. LIC's market share in the new business on this count may be 97%.
   
   
8. What is the size of your agent force?
   
   As at the end of January 2003, we have on our roll more than nine lakh agents.

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