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Insurance has few takers in Salaried Class – Survey report

A large chunk of the salariat in the city chooses not to invest in financial planning programmes like medical insurance and life insurance.

This interesting revelation comes from a survey of 1169 salaried individuals from the IT/ITES segment in the age-group of 22-54 years across Bangalore, Chennai and Hyderabad, conducted by Right Horizons, an investment advisory and wealth management firm.

Not only does the survey show that 95 per cent of the respondents, whose average age is 26 years, have not taken out medical insurance, nearly half the respondents as a whole fall under this category. And as regards such persons as are covered, the majority happen to have medical insurance only because their employers deduct premium at source. Only 5 per cent have invested in medical insurance on their own, although complete tax deduction under Section 80D is available for premium payment up to Rs 15,000 (Rs 20,000 for senior citizens).

While 81 per cent of them did not avail themselves of full tax benefits under Section 80C, as few as 5 per cent invested in tax-saving ELSS (Equity Linked Savings Scheme).

Among persons using partial tax savings, the survey observes, company PF accounts for 30 per cent in value terms. Apart from PF, 65 per cent of the value of investments is in “traditional / safe’’ instruments like PPF, NSC, and life insurance, according to the survey.

Source : Expressbuzz.com (The New Indian Express Group)

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