Insurers to pass on GST cut, expect slight demand rise in policies

Insurers will implement GST-free rates from Monday and pass on the full benefit to policyholders, though withdrawal of input tax credit may impact margins over time

Life and health insurers are preparing to implement the new goods and services tax (GST) rates starting Monday. According to industry insiders, companies plan to pass on the full reduction in GST to customers without changing product prices for now.

 

While some insurers are ready with their entire product lineup updated to reflect the new GST rates, others may initially roll out only their best-selling products until the rest are aligned with the revised tax structure.

 

Insurers also expect a slight uptick in demand beginning Monday, as many customers had delayed purchases in anticipation of the new GST rates.

 

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