Efforts to make the insurance sector more vibrant and healthy continue.
The finance minister has sounded out the insurers on his willingness to meet them early next month to discuss taxation issues and to figure out other effective steps for boosting the industry, said a senior insurance official familiar with the development.
The regulator might also meet the insurers before the FM meeting to discuss various solutions. P Chidambaram has asked the insurers to suggest different measures on the taxation front such as a reduction in service tax, tax treatment of annuity products on a par with the New Pension Scheme and Tax Deducted at Source on commission payments made to agents.
Recently FM had announced a series of measures such as faster clearance for new products, easing of investment norms for companies and allowing banks to sell products of more than one insurance company among other to boost the insurance industry.