Nitin Gadkari said the union that met him raised points related to differential treatment to savings by way of life insurance, re-introduction of IT deduction for health insurance premium and consolidation of public and sector general insurance companies.
Road, transport and highways minister Nitin Gadkari today wrote to finance minister Nirmala Sitharaman and requested to withdraw 18% Goods and Services Tax (GST) on life and medical insurance premiums. Nitin Gadkari said that the GST amounts to taxing the uncertainties of life and restricts the sector’s growth. Both life and medical insurance premiums attract a GST of 18%.
In his letter, he requested that the suggestion of withdrawal of GST on life and medical insurance premiums be considered as a priority as it becomes cumbersome for senior citizens.
Nitin Gadkari said the union that met him raised points related to differential treatment to savings by way of life insurance, re-introduction of the IT deduction for health insurance premiums, and consolidation of public and sector general insurance companies.
The minister added, “Similarly, the 18% GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business which is socially necessary.”
Gadkari continued, “Levying 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 some protection to the family should not be levied tax on the premium to purchase cover against this risk."
This also points to “differential treatment of savings by way of life insurance, reintroduction of income tax deduction for health insurance premiums and consolidation of public sector general insurance companies”, the minister added.
The count of lives insured and policies issued, though, stayed low. The organisation mentioned in its communication to Sitharaman that renewal rates of policies kept decreasing because of frequent increases in premium rates and the escalating medical inflation.
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 "Remove GST on life, medical insurance premiums: Nitin Gadkari to FM Nirmala Sitharaman")
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