G Murlidhar, Chief Operating Officer, Kotak Mahindra Old Mutual Life Insurance

The budget should introduce measures that should help gravitate to a situation where people around the country have easy access to affordable life and health insurance. One of the greatest challenges facing the country is under-penetration of insurance with the challenge most accentuated in the rural and semi urban areas. Enhanced tax sops for investing into insurance and additional sops that encourage rural and semi urban citizens to insure themselves will not only go a long way in enhancing the appeal of insurance among all sections of society but also better the penetration numbers. In a country where no defined universal social security mechanisms exist, the safety net insurance provides will go a long way in reducing strain on individuals and the over-stretched governmental outreach frameworks and help better manage the ever ballooning social sector spending. Reducing tax rates could be more cost effective to direct social security. Key national development projects are contingent on greater long term funds mobilization. Insurance companies are among the biggest mobilizers of long term funds. Policy intervention is crucial to help insurance companies assist the government in achieving its ambitious financial inclusion and fund mobilization goals.