Huge investments are coming in the insurance sector
On the one hand, there is a debate in the country about whether the 18 percent VAT on health insurance premiums should be abolished. On the other hand, people are investing a lot of money in the life insurance segment. This is confirmed by the figures for August on new premium income from life insurance companies.
Life insurance companies have earned a lot from the first premium received from the sale of new policies in August. It has increased by 22 per cent to Rs 32,644 crore. While in August 2023, this income has risen to Rs 26,788.55 crore.
Overall increase in new premium collection
According to data from Life Insurance Council, an insurance sector organisation, premium collection by insurance companies for new policies has increased even in the first five months of the fiscal year 2024-25. It rose by 21 per cent to Rs 1,54,194 crore. While in the same period last year it was Rs 1,27,661 crore.
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Demand from individual and corporate clients remains steady in the life insurance sector. However, in August this year, the number of new policies issued decreased by 1.44 percent to 23,94,007. In the same period last year, insurance companies had sold 24,28,895 policies.
The number of insurance agents is increasing
In August, life insurance companies hired 1,08,147 life insurance agents. This means that the total number of agents present at the start of the 2024-25 financial year has increased by 3.74 percent.
At the 54th meeting of the GST Council, there was a discussion on whether to exempt GST or reduce the rate of health insurance. But the final decision will now be taken at the meeting to be held in November. Most of the states in the country have broadly agreed to grant GST exemption on insurance premiums. However, a new Group of Ministers has been formed to discuss this in depth.
