Insurers seek ITC on renewal premiums, distribution costs

Protecting Margin A Concern

- NARAYANAN V

LIFE AND GENERAL insurers will approach the government seeking input tax credit (ITC) on renewal premiums and distribution expenses, such as agent commissions, to fully pass on the GST rate-cut benefits to policyholders.

"Reinsurance premiums are exempted from GST, unlike distribution costs related to the direct sale of individual policies. We are putting together a representation note on behalf of life insurance players," Kamlesh Rao, chairperson of the Life Insurance Council's Insurance Awareness Committee, said in a TV interview.