It was a matter of disappointment for the insurance industry, which was eagerly waiting to hear some concrete implementation strategy on hiking the FDI limit in the sector from 26-49% and on the passage of the Pension Funds & Regulatory Development Authority Bill (PFRDA) in Budget 2006-07.

"I intend to introduce a comprehensive Bill on insurance in 2006-07," said Union FM P Chidamabram while presenting the Budget 2006-07. He further said that the bill for setting up the PFRDA are before Parliament. The Standing Committee on Finance has recommended the Bill. "I would urge Honourable Members to cooperate with the Government and pass the Bill,'' he added. "We hope that this time around, the Pension Bill gets passed. That's an opportunity waiting for a big break as 90% of Indians are not covered by old age benefits/social security,'' said Sam Ghosh, CEO and MD, Bajaj Allianz Life Insurance.

Stuart Purdy, CEO & MD, Aviva Life said, "We expect maturity proceeds from the insurance policy to remain tax-free and EET system of taxation should not be introduced.''

"For the insurance sector the Budget is a mixed bag. Some announcements on exemption of FBT from superannuation funds and increase the exemption limit for pension products are welcome moves," said Nani Jhaveri, CEO, Birla Sun Life Insurance.

(www.financialexpress.com)