Reduction in GST on insurance products: The chairman of the committee is Jayant Sinha who has been the Minister of State for Finance in the Central Government. In the report, the Ayushman Bharat scheme of the Central Government has been described as a very successful campaign.
Parliamentary committee on reducing GST rate insurance products: Central government can reduce GST on insurance products. The parliamentary panel has recommended for this. The chairman of this committee was Jayant Sinha. It has been said that there is a need to reduce GST especially on health and term insurance.
At present it is 18 percent. The committee has suggested that the GST rate on microinsurance and health insurance should be less than 18 percent. Senior citizens need this more. When GST rate is high then premium has to be paid on insurance due to which poor people are not able to take insurance policy. This is why it has been recommended to make insurance affordable.
According to a report by news agency ANI, the committee presented its report in Parliament on Tuesday. In this, it has been said that the burden of premium will increase due to high rate of GST. This creates difficulty in taking an insurance policy. The committee has recommended in its report that insurance policies should be made more affordable.
What else is said in the recommendation
The committee has recommended that the GST rates applicable on health insurance products, especially retail policies and micro insurance policies for senior citizens, may be reduced. Apart from this, term policy can also be reduced. However, the insurance industry in India has grown rapidly in recent years. Total insurance premiums have increased. The reason for which is the reforms done by the government. However its reach is still low.
How many people have insurance coverage?
Let us tell you that the insurance industry is growing in India. Despite this, due to the large population, only 3 percent of the people here have insurance coverage. The recommendation of the parliamentary committee is only to increase the insurance coverage.
India ranks 10th in the world in terms of insurance business. In the year 2020, India was ranked 11th in this. At the same time, insurance premium is also increasing, which is difficult for common people to pay. The insurance business in India has boomed in recent years.
The country has a long way to go
According to a media report, India’s share in the worldwide insurance market in the year 2020 was about 2 percent. A lot of work still needs to be done to bring it at par with the developed countries of the world.
According to the data, India ranked 10th in the global insurance business with a market share of 1.85 percent in 2021. India’s share in the year 2020 was 1.78 percent. India still has a long way to go in this area. India ranks 9th in life insurance business in 2021. Whereas in non-life insurance, India ranks 14th in the world.
At the same time, the committee has talked about strengthening the financial position of 4 government sector insurance companies. It has been said in the report that these companies have less capital. They are suffering more losses. Health insurance accounts for more than 50 percent of their total business.
