Mysuru: In response to a nationwide stir called by the Life Insurance Agents Federation of India (LIAFI), nearly 50 LIC agents staged a demonstration in front of the LIC office on Dewans Road, Lakshmipuram yesterday, demanding abolition of Service Tax on Policy premiums.
Claiming that the Service Tax on LIC Policy premiums introduced through the Goods and Service Tax (GST) was a burden on the Policy holders, the protestors urged the Union Government to abolish the Service Tax and thus come to the rescue of Policy holders, who are put to a lot of hardship. The Association office bearers D. Puttaswamy, Mahadev, Prakash, Basappa, Kengegowda, Sudhakar and others took part in the protest.
ST or GST on Life insurance policies are not justified in any case and it should be abolished immediately in the larger interest of policy holders.
Reason being very simple. The premium paid by policy holder is returned to policy holder in case of maturity and in case of his death premium is returned to his nominee with bonus or without bonus, as the case may be.
But ST/GST paid by policy holder is not returned at all making policy costlier.
ST/GST is a panelty on policy holders for making a provision for protection of life.
Abolish it immediately