Employees of major Public Sector insurance companies called for withdrawal of Goods and Services Tax (GST) on insurance premium.
In a Coimbatore region level conference of the General Insurance Employees Association, the South Region, Joint Secretary G.Kannan delivered key note address highlighting the threats faced by the Public Sector insurance companies because of the policies in pursuit of globalization agenda. He spoke about the dangers of the move to sell shares of public sector insurance organizations. The insurance service of the government organizations was public friendly and credible. The huge financial corpus generated by the insurance companies in the government sector ensures security of customers. But opening of the sector for market driven by private players will end the credibility of the insurance services.
As regards GST on insurance premium, it was pointed out that insurance premium was hard earned income of the public which they save for future security. Being a public service, GST should not be levied on any type of premiums including Life Insurance. Before GST was launched, vehicle, medical and accident insurance were levied service tax which progressively increased from 8 to 15 percent. Life Insurance premiums was brought under service tax only recently before the GST launch but the lower rate of tax. Under GST, all insurance service types attract a maximum 18 percent GST.
The conference participants passed resolutions demanding withdrawal of the move to privatize public sector insurance companies and to withdraw GST on insurance premiums of all types said M.Karupaiah,
President Coimbator Region, General Insurance Employees Assocaiation. P.Gurusamy, Conference President, presided over the event. H.Venugopal, General Secretary of the Assocation welcomed. R.Dhanraj, Vice President LIC Employees Union was a special invitee.