A parliamentary committee led by Jayant Sinha has recommended the rationalization of Goods & Services Tax (GST) on insurance products, particularly health and term insurance, to make them more affordable. The committee also suggested that the Reserve Bank of India issue on-tap bonds to meet the capital requirements of the insurance industry, estimated at Rs 40-50,000 crore. Additionally, the committee proposed strengthening the financial condition of state-run general insurers and implementing measures to improve competitiveness and attract capital and talent. The committee also recommended the establishment of a specialized insurance business for disaster-prone areas and the examination of E-Challan enforcement for motor insurance across states.
According to several media reports, relief packages can be announced for sectors like health, infrastructure, real estate, defence, hospitality and MSME sectors in the wake of COVID-19.