Under the next generation reforms in the Goods and Services Tax (GST), many companies have cut the prices of products. Prices from products sold on digital platforms, especially from automobiles to e-commerce companies, have been cut, but policy holders are not getting the full benefit of the cut cuts by insurance companies. On the other hand, companies are adopting several new forms including additional coverage, which has increased rather than a reduction in premium.
The GST Council had reduced the 18% GST on health and life insurance premiums to zero. The new rates are effective since 22 September. Now, people whose premiums have increased after September 22 have not been cut as much as it should have been. Most of the complaints are about health insurance companies. Some companies have increased the premium by citing increasing age limit of health insurance policy holder. Like a person had paid a premium of 63 thousand rupees last year, but this time his age has been completed 70 years. The company cited that your age limit is changing, so your premium is being increased.
Complaints about companies are not only that, many companies are keeping the policy as much as the policy by adding some rider (safe guards) i.e. additional coverage with the policy. By adding additional coverage, the insurance company is saying that you will get this additional benefit. At the same time, many companies complain that their policy already included additional coverage, but the premium was increased by calling it new coverage.
On the other hand, sources say that the government is now monitoring health and life insurance premiums. The Insurance Regulatory and Development Authority of India (IRDA) can be asked to take action in this regard.
A large number of complaints have come on social media due to a reduction of up to two and a half percent in the premium of life insurance policy, in which people are tagging insurance company and IRDAA. Like a social media user wrote that last year he had a premium of Rs 23667 as life insurance. This time the premium is Rs 23146. That is, the total premium has been reduced by about 2.5 percent, while the government has reduced the GST rates by 18 percent.
Some companies have given benefits, reduced policy commission, amidst all complaints, some companies have taken the initiative to directly give the benefit of GST rates to the policyholders. To reduce their expenses, companies have also reduced the policy -related commission so that its benefit can be given to the policyholder.
Notebook prices have increased. The government has removed GST from notebooks and copies to zero, while GST has been reduced to 18 percent on paper. This will increase the prices of notebooks and copies.
Because, shopkeepers selling notebooks and copies are giving 18% GST while buying goods, but they cannot take any GST when selling customers, so that they cannot claim input tax credit. In such a situation, the prices of notebooks have increased. Earlier, 12 percent GST was imposed on notebook, practice book, map, pencil and drawing materials, which the government has reduced to zero in GST 2.0, but 12 percent of GST on paper has been increased to 18 percent.