Good news for health and insurance policy holders, as cost of insurance premium may come down if…

To a query on how the government will ensure that insurance companies pass on the benefits of any GST reduction to consumers, rather than retaining them through increased premiums, Sitharaman said competitive pricing would bring down the cost of insurance.

It could be a big reprieve for all health and life insurance policy holders. Union Finance Minister Nirmala Sitharaman said on Wednesday that the cost of insurance is expected to come down if the GST Council recommends a reduction in the GST rate. 

The finance minister said in a written reply in Lok Sabha that the GST Council in its September 9 meeting had recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on life insurance and health insurance.

The finance minister said, “The matter of review of GST rates on life and health insurance is pending before the GoM. If a recommendation for a reduction in GST rate is made by the GST Council, the cost of insurance to the policy holder is expected to come down on account of reduction in GST.” 

Sitharaman said this while replying to the question on whether GST reduction on health insurance will be a step towards making healthcare more equitable.

To a query on how the government will ensure that insurance companies pass on the benefits of any GST reduction to consumers, rather than retaining them through increased premiums, Sitharaman said competitive pricing would bring down the cost of insurance.