At the 14th Global Conference of Actuaries J. Hari Narayan, IRDA Chairman stated that IRDA feels that certain provisions in the Direct Tax Code (DTC) are not in the best interest of the industry.
According to DTC, only life insurance policies providing a sum assured of 20 times the annual premium are eligible for tax exemption; the current norm is 5 times. IRDA has written to the government to revise it to 10 times the annual premium.There are certain repercussions of the above provision on other products as well. It renders fewer takers for retirement benefit products and makes endowment products unaffordable for older people.