Ajay Seth, chairman, IRDAI
Though, basically it will be a welcome meeting for the insurers, Seth will use the forum to discuss a few things including the action plan by the insurers to implement the new goods and services tax (GST) plans announced by the government on Sept 3
Hyderabad: Ajay Seth, newly appointed chairman of IRDAI, is having its first meeting with chief executive officers (CEOs) and actuaries of the Indian insurance companies on Sept 17 in Hyderabad.
The reinsurers are not included in the meeting.
Seth, who took over as the chairman of IRDAI on Sept 1, will meet CEOs of life and non-life insurance(including stand alone health insurers) companies separately on the same day and will divide his day between both the meetings.
However,it is not yet known whether quarterly Bima Manthans, where CEOs of Indian life, non-life and reinsurance industry used to meet the chairman of Irda over two days, introduced by Seth’s predecessor Debasish Panda, will continue or not under Seth.
Though, basically Sept 17 will be a welcome meeting for the insurers, Seth will use the forum to discuss a few things including the action plan by the insurers to implement the new goods and services tax (GST) plans announced by the government on Sept 3.
Individual life and health insurance premiums have been exempted from the 18 per cent GST from 22nd September onwards. This includes term insurance, health policies, including family floater and ULIPs.
IRDAI has already asked the insurers to inform them about the exact plans of each insurers to implement the new GST plans.
Finance Minister Nirmala Sitharaman had said she will personally monitor passing on of GST rate cuts in the form of price reduction.
Sitharaman had promised that she will personally monitor the passing on of GST rate cuts by the businesses to the consumers.
As the insurers are not getting any input tax credit (ITC) after the 18 per cent GST has been removed from retail Health and Life Insurance covers, there are possibilities that they will raise prices of their products to maintain their margins.
However , analysts point out that IRDAI will not allow such hikes for some time.