IRDAI urges insurers to pass GST relief fully to customers

The Chairperson urged insurers to develop products for different population groups.

The Insurance Regulatory and Development Authority of India (IRDAI) met with insurance company CEOs and appointed actuaries on 17 September to discuss policyholder protection and industry growth. 

The meeting, chaired by IRDAI Chairperson Ajay Seth, highlighted the recent exemption of life and health insurance from the Goods and Services Tax (GST), which insurers welcomed. 

Companies were told to ensure that the benefit is fully passed on to policyholders.

Seth said the exemption creates opportunities for insurers to improve affordability and expand coverage, particularly beyond urban centres and into rural areas and the unorganised sector. 

He urged insurers to develop products for different population groups, strengthen service quality, and speed up claims settlement.

Expanding government-sponsored schemes for vulnerable communities was also emphasised.

The discussions covered setting stronger standards for compliance, risk management, and internal audits. 

A standing forum at the Life Council will also be created to review court rulings and establish uniform practices in solicitation, underwriting, policy servicing, and claims.

Seth concluded by saying that the sector must work towards broader access and coverage as part of India’s goal of achieving “Insurance for All” by 2047, ensuring that every citizen and business has adequate protection.