LIC agents protest against GST for insurance policies

Life Insurance Agents Federation of India protests 18% GST on policies, demanding removal or reduction for fair insurance access.

Opposing GST for health and life insurance policies, Life Insurance Agents Federation of India staged a demonstration here on Tuesday. 

Protesters condemning GST rate of 18% on life and health insurance policies said that there had been growing clamour for removing or lowering of the GST rate as it was against the very motive of such policies.  

S. Marialouis, Madurai division president of LIAFI, said amid the growing outrage against such moves of the Union government, Life Insurance Corporation had revised the upper limit for purchasing its new endowment plan from 55 years to 50 years. 

“When people above 50 years pay all forms of taxes, why should they be barred from benefitting any type of life insurance policies,” he questioned.  

When the age limit has been reduced for mostly preferred plans, some plans with minimal benefits still continue with 55 years as limit, he noted.  

Previously, for low-income people, the minimum sum assured for policy was ₹1 lakh, but now, it has been increased to ₹2 lakh with an increase in premium up to 8%, Mr. Marialouis stated.  

Due to this, many people who could only afford less have to withdraw their plans, he added.