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INSURANCE POLICY & REGULATORY UPDATES

Why India May Be Considered Better for Senior Citizens

INSURANCE POLICY & REGULATORY UPDATES

  1. GST on Insurance Premiums : GST Council is considering reducing GST on health and life insurance premiums from 18% to 5% while retaining input tax credit – aiming to improve affordability.
  2. Disclosure of Existing Policies – SC Ruling : Supreme Court says non-disclosure of existing life insurance policies when buying a new one can lead to claim rejection due to misrepresentation.
  3. Deposit Insurance Enhancement : The coverage under DICGC might be increased from ₹5 lakh to ₹15 lakh for bank deposits, as proposed by the Ministry of Finance.
  4. Terrorism Risk Insurance : Premiums for terrorism insurance to drop by ~5%, following low claim trends since the 2008 Mumbai attacks.
  5. Third-Party Motor Insurance : 15–20% hike in third-party motor premiums likely from April 1st, 2025, due to increasing claim costs.
  6. Employer’s Compensation Insurance : Reiterates the employer’s legal liability for work-related injuries or death; excludes war, nuclear, and unauthorized incidents.
  7. Unlicensed Driver Liability : MP High Court rules car owners are liable, not insurers, if an unlicensed hired driver dies in an accident.
  8. Pre-Existing Health Conditions : IRDAI caps waiting period at 36 months, and after 5 years of continuous coverage, insurers cannot deny claims for unintentional non-disclosure.
  9. Car Insurance Add-Ons : Insurers are introducing add-ons and offering up to 80% discounts on base premiums while charging for extra features.

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