Coimbatore – The All India Insurance Corporation Employees Union claimed that the insurance sector of India had been severely hit by the imposition of 18% Goods and Services tax that was imposed. The union said that more than 22 lakh people signed the petition to Prime Minister Narendra Singh Modi, thus opposing GST on the insurance premiums.
The union joint secretary, Ms. M Girija said that the newly imposed goods and service tax has for sure brought some additional burden as few areas which were earlier untouched have now been brought under the purview of GST.
She stated that the union had launched a signature campaign for all the policy holders and the general public as well. The campaign demands the government’s withdrawal of goods and service tax on the insurance premiums and various other insurance related services. Girija confirmed that till date more than 22 lakh people had shown interest and thus signed the petition to the prime minister.
She was of the opinion that penalizing late fee could not be justified and also various new areas of servicing had been brought under the tax regime, and the service charges applicable for nominations, assignments all attracted as much as 18% GST now.
Post the implementation of the GST; it is going to be a tough task ahead on the current role played by LIC and various Public sector general insurance companies.