Centre should consider GST waiver on life, health insurance: Policybazaar
Says GST waiver would reduce burden on Centre, as it would lead to fewer people opting for related govt schemes, ultimately helping to achieve govt’s goal of providing life, health insurance to all by 2047
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If the matrix of salary earned by a consumer as against the size of insurance policy purchased is considered, then compared to developed countries, in India term and health insurance penetration is low. Under such conditions, the Centre’s proposal to impose 18 per cent on insurance premium of health, term and bikes, should be reconsidered - Sajja Praveen Chowdary, Director, Policybazaar tells Bizz Buzz
Hyderabad: Gurugram-based Policybazaar, an insurance-tech platform said while the size of policy plans opted in term and health insurance is low in India the Centre’s proposal to impose 18 per cent GST will hinder its growth. If the government wants to achieve life and health insurance for all by 2047, total GST (Goods and Services Tax) waiver should be considered, the company said.
With health and term insurance primarily being Policybazaar’s long-term value business, the company reported that its overall insurance premium is growing y-o-y at 78 per cent with Rs 4,871 crore collected in the first quarter of current financial year, and the new insurance premium is growing at 66 per cent.
“If the matrix of salary earned by a consumer as against the size of insurance policy purchased is considered, then compared to developed countries, in India term and health insurance penetration is low. Under such conditions, the Centre’s proposal to impose 18 per cent on insurance premium of health, term and bikes, should be reconsidered,” Sajja Praveen Chowdary, Director, Policybazaar told Bizz Buzz. He further added that a GST waiver would reduce the burden on the Centre, as it would lead to fewer people opting for related government schemes, ultimately helping to achieve the government’s goal of providing life and health insurance to all by 2047.
On a query about insurance premium payments made on its online platform from Telangana and Andhra Pradesh, Chowdary said, “We are likely to close FY25 with a premium collection of Rs 20,000 crore, of which about five per cent is going to be Telangana and Andhra Pradesh’s contribution across all insurance segments. Overall, we are expecting new premium to grow by 75 per cent.” Policybazaar had opened its sales and customer service centre in Hyderabad in 2022 with about 50 employees. In two years their workforce strength has increased to 450, and over the next six months the company is set to expand its office space here and hire additional 350 to 400 employees. In both the Telugu States, Policybazaar is currently present at 18 locations with 50 employees working in sales and customer service.
To cater to the growing consumer base and their interest to purchase term, health, motor, and Unit Linked Insurance Plans in tier 2 and 3 cities of Telangana and Andhra Pradesh, additional 150 employees will be hired over the next two years, Chowdary said.
