Please see below, the full statement issued by the Insurance Association of Guyana:
The Insurance Association of Guyana IAG wishes to express its fullest support for the initiatives contained in the 2024 National Budget presented by the Honorable Minister of Finance, Dr. Ashni Singh, which propose to increase the tax-deductible limit for Life and Medical insurance, and to remove VAT and Duty from firefighting and detection equipment.
IAG data show that with the deductibility of Life and Medical premiums, first introduced in 2022, tax taxpayers have been more incentivized to protect themselves and their loved ones by taking advantage of the facility.
The IAG therefore welcomes the government’s continued recognition that Life and Health insurance are key to the development of a nation, by providing for the minimizing of the oftenunbearable financial burden of the untimely death or illness of a citizen, especially a breadwinner.
Ultimately, Life and Medical insurances significantly reduce these social and economic burdens on individuals and the entire nation.
The IAG also notes that the appropriate amount of Life and Medical insurance improves the creditworthiness of a borrower, since it provides for the continued servicing of loans in the unfortunate event of illness or death of the borrower. Thus, these insurances certainly benefit our housing and business sectors.
The removal of VAT and Duty on firefighting equipment is also a most meaningful initiative. Fire insurers have always known that such equipment significantly reduces the risk and severity of fire loss. Every dollar lost in a fire is lost to the entire nation, and fires could have far-reaching social and economic damage. The IAG therefore fully welcomes and supports this proposition as important for the management of the risk of social and economic loss due to fire.
The IAG therefore congratulates the Government of Guyana on these initiatives, fully supports them, and urges that everyone joins in giving these most significant proposals their fullest support.
Omadatt Singh
President
The Insurance Association of Guyana
