18% GST on insurance premium is atrocious: Former IRDAI member Nilesh Sathe

Says insurance becomes a necessity in the absence of any social security for citizens, nowhere else in the world one has to pay such heavy tax on premium

Insurance is a necessity in India in the absence of a social security net, but the government is taxing the sector heavily even as others in the financial sector are exempted, lamented former Insurance Regulatory and Development Authority (IRDAI) member Nilesh Sathe.

Sathe was the keynote speaker at the insurance round of the Business Standard BFSI Insight Summit.

“Charging 18 per cent GST (Goods and Services Tax) on insurance premium is atrocious,” the respected insurance veteran said in his customary frank manner.

“In the absence of any social security available to the citizens, insurance becomes a necessity. All essential commodities