GST (Goods & Service Tax) will affect medical insurance & personal accident coverage.
Impact to policyholders/lives assured
Life Insurance products such as whole life, endowment, term life policies are exempted and will not be subject to GST. However, standard GST of 6% will be charged on the non-life insurance products which include the following two (2) categories regardless of whether such products are standalone policies or a rider to a particular policy:
- a. Personal Accident products i.e. comprehensive accidental benefit, accidental death
- b. Medical Insurance product i.e. medical reimbursement products, hospital income
In addition to the products mentioned above, other services which may be provided by the Company under the insurance policy i.e. policy fee, will also be subject to the standard GST of 6%.
Please note that the products and services referred to above as being subject to GST are subject to change by the relevant authorities.
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