Insurance Authority’s suggestions in upcoming Budget regarding discount on Insurance Premiums

Kathmandu; The Insurance Authority has submitted a proposal that the budget for the next financial year should be brought in such a way that it will help to expand the reach of the insurance sector.

Chairman of Insurance Authority Surya Prasad Silwal said that the budget for the next financial year will be on the favor of increasing the insurance sector. For that he have already send the required suggestion to the Authority.

The Insurance Authority has proposed for providing a tax exemption of up to 100 thousand Rupees on the taxable income of life insurance in the upcoming budget of the next financial year 2080/81. Currently, there is a provision of tax exemption up to Rs 40,000 on taxable annual income for life insurance. The government had increased the taxable income from 25,000 to 40,000 in the financial year 2078/79.

Similarly, to encourage health insurance, the insurance authority has proposed to give a tax discount of up to 40,000 rupees on taxable income.

The authority has also suggested to make property insurance mandatory and also suggested to the government to provide tax exemptions on it.

According to the information, the Insurance Authority has also proposed to create a ‘National Policy’ that will address the insurance sector as a national priorities. That Policy will be based on solving the problems that are seen in the present context and also help to increase the access and maintain the quality of Insurance Sector.

Currently, there is a 25 percent corporate tax on life insurance and 30 percent on non-life insurance. Chairman informed that it has been suggested to make both equal and maintain 25 percent corporate tax on both insurance.

Foreign employment insurance has been made mandatory for Nepalese who have gone to foreign employment after obtaining a work permit other than India.  But this time, the authority has also submitted a suggestion for creating a separate foreign employment insurance policy for India and taking the necessary process forward on the recommendation of the local body.