The announcement of taxing insurance proceeds of over Rs 5 lakh premium in the Budget 2023, sent Insurance stocks on a downward spiral on Wednesday. In the previous budget, exemptions were curbed in unit-linked insurance policies where proceeds exceeded Rs 2.5 lakhs.
Listed players in insurance segment such as ICICI Prudential Life Insurance Company, HDFC Life Insurance Company, and Max Financial Services tanked over 10 per cent, while SBI Life Insurance Company and Life Insurance Corporation of India tumbled close to 9 per cent on Wednesday.
Since the last budget, the overall trend in these stocks has not been attractive, as most are trading close to their January 2022 levels. But, Life Insurance Corporation of India, which went public in