News – How much relief can one get on insurance? Discussion on Group of Ministers possible this week

The report of the Group of Ministers on life and health insurance may be discussed in the GST Council meeting this week. According to exclusive information received by CNBC TV18, the Group of Ministers may propose some special exemptions in life insurance and health insurance before the Council. The 55th GST Council meeting is going to be held on 21st December in Jaisalmer, Rajasthan. There is a continuous demand that common people should get discount on the premium of insurance policy so that their cost can be reduced and more and more people can be brought under the ambit of insurance.

Which relaxation can the Group of Ministers propose?

Sources have informed that the Group of Ministers may make several proposals to make insurance affordable. In the case of life insurance, discounts may be offered for individual term life policies and reinsurance. At the same time, it is possible that there may be no change in GST rates on Group Term Life Insurance at present, although it is possible to discuss it later. In the case of health insurance, rebate on individual health insurance and reinsurance for senior citizens, individual health insurance policies providing cover up to Rs 5 lakh and rebate on reinsurance can be proposed.

The Group of Ministers may propose that the GST rates on health insurance for people suffering from mental illness should be examined by the Fitment Committee and the DFS. GST rates on health insurance and reinsurance with cover above Rs 5 lakh for the general public may remain unchanged.