Quick Summary
The Indian insurance industry came under sharp criticism on Monday after an investment analyst publicly labelled it the "most consumer-unfriendly" sector and accused the regulator of complicity in the practice. In a post on X, he alleged that insurers were arbitrarily increasing premiums even after the government abolished the 18% GST on health and life insurance premiums. "The insurance industry is the most consumer-unfriendly and is duly supported by a friendly regulator," he wrote, tagging t
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FAQ :
Insurers are reportedly using the loss of input tax credit (ITC) as an excuse to hike base premiums, effectively offsetting the GST exemption benefit for consumers. Some policyholders have also reported insurers increasing quotes and then offering a 'GST abolition discount'.
The GST Council exempted individual health and life insurance from GST to ease the financial burden on households.
Policyholders are complaining about arbitrary premium hikes, denial of claims, and non-transparent annual premium increases that make policies unaffordable.
An investment analyst publicly labelled the sector 'consumer-unfriendly' and accused the regulator, IRDAI, of complicity. Many policyholders and other analysts have echoed these concerns.
Critics are urging the insurance regulator, IRDAI, to implement stronger measures for transparency in premium calculations, consumer protection in claim settlements, and accountability in policy renewals.
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