Remove GST on life and medical insurance premiums: Nitin Gadkari makes demand to Finance Minister Nirmala Sitharaman.

Road, Transport and Highways Minister Nitin Gadkari today wrote a letter to Finance Minister Nirmala Sitharaman requesting the withdrawal of 18% Goods and Services Tax (GST) on life and medical insurance premiums. Nitin Gadkari said that GST is equivalent to taxing the uncertainties of life and hampers the growth of the sector. Both life and medical insurance premiums attract 18% GST.

In his letter, he requested that the suggestion to withdraw GST on life and medical insurance premiums be considered on priority as it becomes cumbersome for senior citizens.

Nitin Gadkari said that the union that met him raised issues related to different treatment for savings through life insurance, reintroduction of IT deductions for health insurance premium and integration of public and regional general insurance companies.

"Similarly, 18% GST on medical insurance premium is proving to be a deterrent to the growth of this segment of business which is socially essential," the minister said.

Gadkari further said, "Imposing GST on life insurance premium is tantamount to taxing the uncertainties of life. The association believes that a person who covers the risk of uncertainties of life to give some security to the family should not be taxed on the premium paid for purchasing a cover against this risk."

The minister said it also pointed to "differential treatment of savings through life insurance, re-introduction of income tax deduction for health insurance premium and integration of public sector general insurance companies". However, the number of persons insured and policies issued remained low. The organisation noted in its communication to Sitharaman that renewal rates of policies continued to decline due to continuous increase in premium rates and rising medical inflation.