How to make auto and travel insurance tax friendly
In recent years, technology has advanced by leaps and bounds. There has been a great improvement in the automotive industry. Although a relatively small portion of the Indian population owns a car, the percentage is slowly increasing. At the same time, a much larger portion of the population owns at least some type of vehicle. Many of those who cannot afford a car own vehicles like a scooter, motorcycle, etc.
With the growth of the Indian middle class and the relatively affordable travel fare, traveling has become easier. More and more people have started to travel the world. This calls for a greater demand for travel insurance. This is because no event is error free. Luggage can be lost, flights and trains missed, accidents are not rare. Unfortunately, not everyone can afford this along with their travel expenses. Traveling internationally can be especially expensive, and international travel insurance even more so.
On the other hand, car insurance is one of the most popular insurance policies in India. This is because it is required. Anyone who owns a car needs an insurance policy. As a result, buying a car incurs many other costs along with it. Their insurance policies are extremely expensive and can put people off buying a car altogether. In 2007, less than 1% of India’s population owned a car. However, the rapid increase in the car-owning population shows the increase in investment in this insurance policy. This can be seen as 4.7% of the population of India owned a car/jeep/van in 2013.
Today, while we emphasize progress, we must also look at the people. We need to figure out better ways to help them. Investing in auto insurance and international travel insurance is often the necessary deterrent to discourage people from buying vehicles or traveling internationally. As a result, to facilitate the growth of such policies, it is important to make them more advantageous.
Why would people invest in an extremely expensive travel insurance policy? It’s true that blunders aren’t unheard of, but they’re not extremely common either. Many may consider it a waste of money. But there will also be some among these who have regretted this decision. Almost everything in most places abroad, from a hotel stay to public transportation, is more expensive.
Therefore, to encourage people to spend on such useful policies, we must make an effort. Making such policies tax friendly allows people to discern their advantages. The hesitation they suffer in spending can be avoided in the advantages that the policy proposes. This would be to the benefit of the people themselves, as such policies offer valuable support.