2. Insurance is a means of
protection from financial loss. ...
An entity which provides
insurance is known as an
insurer, insurance company, or
insurance carrier. A person or
entity who buys insurance is
known as an insured or
policyholder.
Meaning
3. TYPES OF INSURANCE
Insurance
1.Life Insurance 2.General Insurance
• Term Life
• Universal Life
• Endowments
• Motor Insurance
• Health Insurance
• Travel Insurance
• Home Insurance
• Marine Insurance
• Commercial Insurance
4. Class 366 section 12A of the constitution bill defines GST as
“Goods and Service Tax means any tax on supply of goods ,services or
Both except taxes on the supply alcohalic liquor for human consumption”.
• GST rate is likely to be higher
than the current rate of service
tax and that will increase the
cost of insurance premium
from 15% to 18% i,e 3%
increase for Term Life and
Universal life Insurance Plans.
5. • Service tax on endowment policies is increased from 3.75% to 4.5% for first year
and 1.88% to 2.25% on second year onwords including renewal of premiums.
• Service tax on Universal Life Insurance policies is increased from 3.5% to 4.55%
for the first year and 1.75% to 2.25% on second year onwords on premiums.
• Health and Motor Insurance tax costs will also go up from 15% to18% .
Life insurance provided by Government
schemes are exempted from GST:
Janashree Bima Yojana (JBY)
Aam Aadmi Bima Yojana (AABY)
Life micro-insurance product as approved by the Insurance
Regulatory and Development Authority, having maximum
cover of Rs. 50,000
6. Varishtha Pension BimaYojana
Pradhan Mantri Jeevan Jyoti BimaYojana
Pradhan Mantri Jan Dhan Yogana
Pradhan Mantri Vaya Vandan Yojana
Any other insurance scheme of the State Government as may be notified by
Government of India on the recommendation of GSTC.
Life insurance provided by Central Government to members of the Army, Navy
and Air Force.
Conclusion
All policyholders will have to pay higher premiums on their
insurance due to increase in GST rates. An average family with
life, health and car insurance will find an increase of 3% on their
insurance expenses
