Home
/ Insuremagic Exclusives
Interview of Ms. Shikha Sharma, CEO &
Managing Director, ICICI Prudential Life Insurance Company
(Date: 2nd March 2006)
Union Budget 2006-'07
Reactions from Ms. Shikha Sharma
• Your views on the Budget 2006-'07:
There are several commendable positive changes in Union
Budget FY07 announced by the finance minister Mr. P Chidambaram.
Measures aimed at enhancing social justice through a variety
of social sector programs, encouraging long-term savings
and as a corollary, infrastructure and rural development,
and maintaining fiscal discipline are some of the key steps
that would leave a positive impact in the long run.
The Finance Minister has introduced positive changes that
will help ensure post-retirement financial security and
boost the growth of the pension industry.
The removal of the sub-limit of Rs 10,000 for tax-free
contributions to pension policies, thereby allowing individuals
to save up to Rs 1 lakh towards such plans is a welcome
move. In line with the aim to promote long-term savings
and post-retirement financial security, this year’s budget
has also made a positive contribution towards superannuation
fund by exempting upto Rs 1 lakh per employee from the ambit
of fringe benefit tax.
• Its effect on Insurance Sector:
The government’s decision to introduce a comprehensive
bill on insurance industry in the coming financial year,
incorporating KP Narsimhan Committee’s recommendations is
a very positive welcome. We believe the committee has made
many positive recommendations that will help in the development
and growth of insurance sector.
• Your wishlist would have been:
ICICI Prudential Life Insurance’s wish-list from the Budget
were:
· The tax incentives are the same
for short-term and
long-term savings, and hence automatically the latter is
ruled out, as an individual would not want to commit his/her
savings for 15-20 years if the tax benefits that they get
from a more flexible 1-2 years are just as attractive. Hence
there was a need to differentiate between long-term and
short-term savings, and incentivise the former.
· With the new ULIP guidelines
in place, there was a need to relook at the prescribed ratio
of 1:5 premium:SA, as part of investments us/80C and 10(10D).
|
