The government has asked life and non-life insurance companies to ensure that benefits of the goods and services tax (GST) exemption approved earlier this month are fully passed on to both existing and prospective policyholders.

Financial services secretary M Nagaraju on Monday also directed insurers to proactively undertake outreach campaigns to publicise the GST reforms and highlight their prospective positive impact in making insurance more affordable and accessible for the common man.

He said this at a meeting with heads of insurance firms and representatives from the regulator, Insurance Regulatory and Development Authority of India, or IRDAI, and officials from Life Insurance Council & General Insurance Council.

The measure is expected to make insurance more accessible and cost-effective, thereby strengthening financial security and enhancing insurance penetration across the country, the finance ministry noted in a statement.

Earlier this month, the GST Council had approved the exemption of GST on all individual life and health insurance policies.

Finance minister Nirmala Sitharaman had then said the move will make insurance more affordable for the common man and increase the insurance coverage in the country.

Source: The Economic Times