20 percent dip in life insurance policy customer count
Posted on: 08/Sep/2017 12:16:07 PM
There is about 20 percent reduction in customers seeking life insurance or business insurance policies post-demonetization and GST implementation.
The GST calculated for insurance premium of Rs 5 lakh for corporate company or individuals is 18 percent. So, this imposes and extra of Rs 90,000 without any kind of value addition or service. Because of this, there is significant reduction in footfall, as most customers prefer low premium insurances, said a senior manager of a National Insurance Company.
Prior to implementation of GST, these premium amounts were imposed with additional 15 percent. Now, 3 percent is to be added extra to GST, thus increasing the premium amount for customers.
This has disappointed all the insurance policy holders and they are worried due to likely dip in insurance coverage if there is no immediate dip in tax slab, says the manager.
There is already a reduction in life insurance coverage from 4 to 2.6 percent. When the insurance cover is imposed with heavy tax, there will be furthermore dip in making the public vulnerable towards financial disasters.
For all the LIC agents across the country, GST is totally a nightmare. LIC has got lakhs of policy holders and all of them are badly hit due to GST. They are now left with no choice than to pay extra for their policy premium.
