Iffco-Tokio General Insurance Co Managing Director Ajit Narain said, the increased tax exemption limit for health insurance under Section 80 D to Rs 15,000 and Rs 20,000 for senior citizens is a positive sign to encourage health insurance.

Industry feels that such a policy move go a long way in increasing insurance penetration in the country.

According to ICICI Prudential Life Insurance Managing Director Shikha Sharma, the existing limit was created a decade ago and the Government has done the right thing by increasing it.

The new limit will motivate individuals to purchase a health care product in their younger years, she said adding the limit for senior citizens is further enhanced in the years to come.

This proposal will improve the penetration of insurance especially health insurance in the country, said Bharti AXA Life Insurance CEO Nitin Chopra.

However there were no major surprises for the Life Insurance industry. The overall threshold limit for tax exemption should have been higher, SBI Life Insurance Managing Director U S Roy said.