ICICI Prudential Life Insurance’s MD and CEO Anup Bagchi believes that despite the new tax rule, where proceeds from non-Ulip products exceeding Rs 5 lakh annual premium have become taxable, will impact the industry too much. The money, he said, would “largely” remain in the insurance industry as long as there aren’t substitute products in the financial sector that can replace the long-term nature of insurance products.
“Yes, the number of customers (with greater than Rs5 lakh annual premium policies) has certainly decreased. And I am sure that it is for everybody. But, it is not disappearing due to taxation.
