New Delhi: Government may announce several sops for the insurance sector in the upcoming Budget. As per Zee Media reports the government may announce tax deduction for home insurance segment, deduction for pure protection insurance plans, tax benefit on pension plans among other insurance sops announcements.
The Interim Budget (2019-20) will be presented on February 1.
The government may allocate upto Rs 4,000-crore for public sector general insurance companies that are saddled by heavy capital deficit.
The capital infusion will be made for three insurance companies – National Insurance Company, Oriental Insurance Company and United India Insurance Company –that are reeling under extreme fiscal pressure. Announcing the Budget 2018-19, then finance minister Arun Jaitley had proposed to merge National Insurance Company, Oriental Insurance Company and United India Insurance Company into a single insurance entity.