Withdraw GST on life, medical cover premium: Gadkari to FM

Tribune News Service

New Delhi, July 31
Union Minister for Road Transport and Highways Nitin Gadkari has requested Finance Minister Nirmala Sitharaman to withdraw the 18 per cent goods and services tax (GST) on life and medical insurance premiums.

Stalling growth
18% GST on medical insurance premiums is proving to be a deterrent for the growth of this business segment. Nitin Gadkari, union minister

Congress MP Karti Chidambaram said he was happy that Gadkari endorsed the demand that he made yesterday on the floor of House asking the Finance Minister to remove the 18 per cent GST levelled on health and life insurance premiums. “We are an underinsured country and we must encourage people to insure themselves,” he said.
In his letter to the Finance Minister, Gadkari raised concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted a memorandum to him regarding the issues of the insurance industry.
Referring to the memo, the minister said, “Levying the GST on life insurance premium amounts to levying tax on the uncertainties of life.
The union feels that the person who covers the risk of life’s uncertainties to give protection to the family should not be levied tax on the premium to purchase cover against this risk.”
He said the main issue raised by the union
was related to the withdrawal of the GST on life and medical insurance premiums.
Both life insurance and medical insurance premiums are subject to an 18 per cent GST. “The 18 per cent GST on medical insurance premiums is proving to be a deterrent for the growth of this business segment, which is socially necessary,” Gadkari wrote. “You are requested to consider the suggestion of withdrawal of the GST on life and medical insurance premium on priority as it becomes cumbersome for senior citizens as per rules with due verification,” he said.