Press Information Bureau

Government of India

Ministry of Finance

13-December-2012 17:34 IST

Government has held meetings with the CEOs of public and private sector insurance companies, IRDA, Life and General Insurance Councils to address the issues in the insurance sector and steps to be taken to revive the growth in the sector. The steps identified for action, to give fillip to the sector and expand penetration, include tax related measures and regulatory issues including investment norms, product design, micro insurance and bancassurance, among others.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.

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DSM/RS/b

Insurance sector revival: tax and regulatory reforms to expand penetration through product, investment and distribution changes. Government consultations with insurers, the regulator and industry councils identified policy options to revive sector growth and expand penetration through fiscal and regulatory measures. Key interventions focus on tax incentives, revisions to investment norms, improved product design including microinsurance, and strengthened distribution via bancassurance to address supply side regulation and demand side access.