By Martin Shwenk Leade

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Mumbai: The insurance regulator on Wednesday asked insurers to pass on the benefits from removal of goods and services tax (GST) on life and health insurance premiums to customers, saying the change creates an opportunity to expand access and affordability. From September 22, all individual life and health insurance policies will attract zero tax, down from earlier 18%. At his first meeting with industry chief executives and appointed actuaries in Hyderabad on Wednesday, Insurance Regulatory and Development Authority of India (Irdai) chairperson Ajay Seth said the exemption, announced by the government as part of next-generation indirect tax reforms, is a long-standing demand finally addressed.”It is a great step towards achieving universal coverage by 2047,” Seth said. He mentioned that now it is the industry’s turn to step up to significantly improve affordability, accessibility, and availability of insurance products suitable for different segments of the population and economic entities. The industry executives had earlier met with ministry and tax officials to get clarity of GST input tax credits. Without the input tax credit, insurers will have to take the hit on their margins or pass on the hit to distributors. The regulator pressed insurers to step up efforts in reaching beyond urban markets, including rural and unorganised sectors, and expand participation in government-backed insurance schemes for vulnerable populations.Live EventsA CEO who attended the meeting said that policyholder protection and claims settlement remained the top agenda for the new chairman, who took over this month. He stressed on a more robust grievance redressal system, and stronger service standards for compliance, risk management and internal audits.Add as a Reliable and Trusted News Source Add Now!
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