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IRDAI, DFS support proposal for lowering GST on health policies for senior citizens, micro-insurance policies, term insurance policies

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Ahead of the GST Council meeting, a proposal for rationalising GST on insurance premium got boost with the Financial Services Department and the Insurance Regulatory and Development Authority of India supporting the move.
The Insurance Regulatory and Development Authority of India (IRDAI) and the Department of Financial Services (DFS) have expressed support for a proposal to reduce the GST rate on health insurance policies for senior citizens, micro-insurance policies, and term insurance policies. Currently, these insurance products are taxed at 18%, which is considered high and potentially prohibitive for many consumers, particularly senior citizens who might find the premiums unaffordable. The proposal aims to lower the GST to make these insurance products more accessible, thereby promoting financial inclusion and better health coverage among vulnerable groups. This initiative is part of broader efforts to make insurance more affordable and to encourage insurance penetration in India.

Read the Full Business Line Article at:
[ https://www.thehindubusinessline.com/economy/irdai-dfs-support-proposal-for-lowering-gst-on-health-policies-for-senior-citizens-micro-insurance-policies-term-insurance-policies/article68961494.ece ]