Thread by @monikahalan

1. The insurance lobby is opening the 'parity' box.
indianexpress.com/article/india/…
It wants 'parity' with NPS for that extra Rs50k that NPS gets over the Rs 1.5 lakh deduction. My suggestion to @nsitharaman and @FinMinIndia is this: We MUST open this box and see what else we can fix.

2. Let's open the 'parity' box for the thinly disguised bank deposits called endowment or traditional plans that take 7-8% return G Secs and turn them into 2-4% return, with a tiny crust of life insurance. The commissions of 30-40% (illegally much higher), need parity with FDs.

3. Ulips need parity with mutual funds and must go 'no load' or zero commission on the investment part of the premium. Again, just 10% of the premium goes towards a life cover, giving the rest 90% that is invested a free pass on ALL other taxes other investments have to pay.

4. There is parity desperately needed in the way 'switches' between schemes of debt, equity and mixed, happen in insurance where it has a no tax status on such switches. Other products don't enjoy this benevolence.

5. The @FinMinIndia and @nsitharaman must ask why, when life insurance products are supposed to be long term - 15-20-30 year products, do more than half policies sold not get funded after 5 years. Persistency is 44% after five years. Data for more than 5th year is not disclosed.

6. We MUST open the parity can. And clean it up.
@nsitharaman @PMOIndia

7. For those interested. Read:
1. Swarup Committee Report: finmin.nic.in/sites/default/…
2. Bose Committee Report: finmin.nic.in/sites/default/…
3. @TRamadorai Committee Report: rbi.org.in/Scripts/Public…