Page 15 - Insurance Times December 2020

Private Life Insurance

Life insurance premium Vouchers/ bills for availing the benefit cohort of Sequoia Capital India's Surge

eligible for reimbursement under the scheme has to be submitted initiative where 17 start-ups collec-
tively raised $45.35 million. The initia-
on or before March 31, 2021.
under LTC cash voucher On the submission of bills by employ- tive provides seed capital allowing
scheme ees who would superannuate before start-ups to scale up their operations.

The premium paid for insurance poli- March, the expenditure department Small businesses find the process of
cies purchased between October 12, said, "vouchers/ bills should be submit- purchasing insurance tedious and costly
2020 and March 31, 2021 by central ted and settled before the date of su- as they are unable to negotiate group
government employees will be eligible perannuation". policy pricing with a small employee
for reimbursement under the LTC cash base. But health insurance has gained
voucher scheme. Insurance start-up Plum awareness following the pandemic.
On October 12, the government an- raises $4 million "The group health insurance market in

nounced the LTC cash voucher scheme Sequoia Capital India backed insurance India is projected to grow to $13.4 bil-
under which employees can purchase startup Plum has raised $4.1 million in lion by 2025 and we will see the rise of
any goods or services with a GST rate a bid to provide group health insur- innovative insurance products. Plum
of 12 per cent or above to avail them- ance to small and medium enterprises. hopes to provide 700 million people
selves. The payments for such pur- The recent round of funding for the with employer-sponsored insurance,"
chases have to be made via digital start-up, which was launched in March said Abhishek Poddar, co-founder of
mode or cheque or demand draft or this year, is led by Sequoia Capital In- Plum.
NEFT/RTGS.
dia and Tanglin Venture Partners. Ex- No Income Tax on life in-
So far, employees had only leave travel isting investors, including Incubate
concession (LTC) benefits on travels Fund, also participated in the funding surance policies of 10 or
made, or else they had to forgo the round. more years, ICAI recom-
amount. The expenditure department
said payment of premium for existing The insurer said that the amount mends Central govt
insurance policies would not be cov- raised would be used to expand in new In its Pre-Budget Memoranda - 2021,
ered under the LTC cash voucher markets, build distribution channels, the Institute of Chartered Accountants
hire talent and develop products.
scheme. of India (ICAI) has recommended the
Since launch, the company has seen
"However, the payment of premium Union government to make all life in-
for insurance policies purchased during rapid growth, securing $1 million surance policies with a policy term of
the period between October 12, 2020, worth of insurance premium. The plat- 10 years or more exempt from tax.
and March 31, 2021, is eligible for re- form has more than 200 companies on The Institute has suggested that the
imbursement under the scheme," it board. tax exemption on life insurance poli-
said. The funding round is part of the fourth cies should now be provided based on
The Insurance Times, December 2020