The finance minister simplifies and eases many regulations to boost the sector.
P Chidambaram today 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.
Currently insurance companies are required to put 75 per cent of their debt market investment into AAA-rated securities. So, IRDA has been asked to consider relaxing norms for insurance companies investing in debt instruments to encourage investments in securities other than the AAA-rated ones.
The ministry in its next round will look at tax issues 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.