Pass On Full Benefits Of GST Relief To Policyholders: FinMin Tells Insurers
The benefits of tax relief should be fully passed on to both existing and prospective policyholders, DFS Secretary stressed in a meeting with insurance companies.
The Finance Ministry on Monday asked insurers to pass on the benefits of the removal of goods and services tax on insurance products to policyholders.
This was conveyed in a meeting chaired by the Department of Financial Services Secretary M Nagaraju with the Insurance Regulatory and Development Authority of India and other top insurers in New Delhi on Monday.
This comes days after the GST Council waived off the tax on health and life insurance, bringing it down from 18% to zero. The changes will come into effect from Sept. 22.
During the meeting, which was attended by the chairman and managing directors of public sector insurance companies and chief executive officers of leading private sector life and non-life insurance companies, Nagaraju emphasised the importance of ensuring that the benefits of the tax reduction are fully passed on to both existing and prospective policyholders.
He further directed the companies to undertake outreach campaigns to publicise the reforms and highlight their impact in making insurance more affordable and accessible for the common man.
The government hopes that this move will make insurance more accessible and cost-effective, thereby strengthening financial security and enhancing insurance penetration across the country.
Several health insurance companies have already rolled out health insurance policies without charging GST. But, with a rider, coverage starts from Sept. 22.
