
Shares of general and life insurance companies jumped in Tuesday's trade amid a media report that suggested a parliamentary panel on insurance cited need to rationalise the GST rate on insurance products, which at present is at 18 per cent. GST rates for health insurance could be reduced, the panel suggested, as per CNBC TV18.
ICICI Lombard General Insurance Company Ltd climbed 4.03 per cent to Rs 1,579.70 on BSE. ICICI Prudential Life Insurance Company Ltd was up 4.22 per cent at Rs 525.45.
HDFC Life Insurance Company Ltd surged 4.82 per cent at Rs 590.60. SBI Life Insurance Company Ltd added 1.4 per cent to Rs 1,440. Life Insurance Corporation of India added 1.57 per cent to Rs 1,016.05.
The panel recommended the rate for retail polices for senior citizens, micro and term policies may be reduced. A capital need of Rs 100 crore should be reduced to encourage smaller and niche players, as per the panel.
New insurance products should be developed and provided as affordably as possible and the govnment should consider allowing composite licensing, CNBC TV18 reported.
Ayushman Bharat can be strengthened by allowing missing middle to participate. A roadmap to strengthen financial conditions of 4 PSU ins companies must be established, CNBC TV18 reported the panel as suggesting.
IRDAI may-consider instituting an ombudsman to deal with consumer grivuances, as per the panel report.
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