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00:00New GST rate for insurance sector also applicable from today and on all individual health insurance policy, life insurance policy, GST would be exempted from today.
00:14So, till now, till the 22nd of September, GST on health insurance was 18%, on term insurance was also 18%, but from today, GST on health insurance and life insurance will be nil.
00:30So, it's a big relief for policyholders, lot of policyholders were waiting to buy new insurance policy. So, now, from today, there will be a surge in health insurance policy inquiries and term insurance policy inquiries also.
00:47There is a concern of ITC for insurance companies because insurance companies were getting input tax credit from 3% to 5%, but insurance companies have assured the government and DFS that they will pass on the complete benefit to policyholders.
01:05So, from today onward, for policyholders, there is a complete relief. So, if for health insurance policy, if somebody was paying a premium of 11,800, today onward, they will pay premium of 10,000 rupees only.
01:20So, it's a benefit of 1,800 rupees. TSU insurance companies has assured that they will absorb the ITC impact on their balance sheet and they will not reduce commission for intermediaries like agents and brokers.
01:37They will not reduce the commission, but private insurance companies are likely to reduce the commission for intermediaries and the ITC impact will be borne by intermediaries like agents and brokers.
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