General insurance agents urge govt to scrap 18% GST on individual health policy
- General Insurance Agents Urge Govt add tax discourages people from availing policies for protection.
- Non-life insurance for households to cover the risks of hospitalization & accidents needs to be push.
- Encourage by the govt to gradually ensure social security for citizens.
The Confederation of General Insurance Agents
Associations of India, an umbrella body of non-life insurance agents.
On Tuesday urge the government to withdraw the 18% GST on individual health insurance policies so that more people are encourage to avail measure of social security.
The confederation submit a memorandum to Finance Minister Nirmala Sitharaman with a copy to.
The GST Council and also to the Parliamentary Standing Committee on Finance.
In the memorandum, the confederation has point out that it is an anomaly that all insurance policies attract 18% GST.
There should have been a differentiation between policies on commercial lines & policies on personal lines, avail by individuals.
The premium paid for policies catering to industry and commerce gets the input tax credit.
But for individuals who avail health, personal accident, household security (fire, theft etc) policies.
The premium pay and the high rate of GST at 18% is an expense that drains limit income.
This discourages people from availing policies for protection
Non-Life insurance for households to cover the risks of hospitalization and accidents needs to be push.
Encourage by the govt to gradually ensure social security for citizens by prompting individuals.
To think of risk transfer to Insurance Companies at bearable, economic costs.
Otherwise at times of natural calamities, accidents, disease, or pandemics like covid-19 even affordable sections of the society turn to the govt for economic assistance.
There are nearly 11 lakh self-employee license non-life insurance agents in the country who play a major role in individually canvassing to sell such policies.
Therefore they vouch for the difficulty and opinion of individual customers on this matter.
It is high time that the affordable section is encourage
The government to avail insurance on their own for health, personal accident and home security.
The onset of the current pandemic has prove the necessity of individuals having health insurance cover for family.
Withdrawal of GST on personal line policies and other tax benefits will go a long way to encourage this trend.
Like all essential commodities, the cost of health insurance premiums has also skyrocket with over 100% increase since October 1.
Many insurance companies have claim that (IRDAI), guidelines have mandate product enhancement leading to the increase in the cost of the premiums.
The government has kept the health insurance in the highest tax bracket which only luxury or non-essential products or services attract.
For instance, a hotel room with 7501 tariffs attracts 18% GST.
Health & finance experts argue that medical insurance
One of the basic products during the pandemic & government should not make money out of people miseries.
Small may be the section of the population who can afford private insurance.
Who shall inevitably seek care from the big corporate hospitals for Covid-19 were they to contract the infection.
But this is a section which serves as an assured source of revenue.