M. Nagaraju, secretary, Department of Financial Services
Further, the insurers have been directed M. Nagaraju, secretary, Department of Financial Services(DFS) to proactively undertake outreach campaigns to publicize the reforms and highlight their prospective positive impact in making insurance more affordable and accessible for the common man
New Delhi: The government on Monday has asked insurers to pass on the full benefits of removal of 18 per cent goods and services tax (GST) from retail Health and Life products to both existing and prospective policyholders.
Further the insurers have been directed to proactively undertake outreach campaigns to publicize the reforms and highlight their prospective positive impact in making insurance more affordable and accessible for the common man.
This specific instructions have been issued by the government as the insurers have shown reluctance to pass on the full benefits of zero GST to the policyholders due to non-availability of input tax credit(ITC) out of the exemption move.
The insurers have maintained that lack of ITC following the removal GST will make the products more costlier.
The newly appointed chairman of IRDA Ajay Seth will meet insurers in Hyderabad on Wednesday
During the meeting, Nagaraju emphasized the importance of ensuring that the benefits of the tax reduction are fully passed on to both existing and prospective policyholders.
The measure is expected to make insurance more accessible and cost-effective, thereby strengthening financial security and enhancing insurance penetration across the country.
The meeting was attended by Swaminathan S. Iyer, member (Life), IRDAI, R. Doraiswamy, CEO & MD, Life Insurance Corporation, Girija Subramanian, CMD, New India Assurance Company, Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance, senior representatives from ICICI Lombard and Aditya Birla Sun Life Insurance; and other major insurance companies.