Edme Insurance Brokers Ltd., formerly Aditya Birla Insurance Brokers Ltd. (ABIBL), is working with the insurers on the pricing of products and insurers might pass on the best benefit to customers, post the GST Council’s decision to bring down the GST on individual life and health insurance policies from 18% to zero, a top official said.
“With the reduction of GST on premiums on individual life and health insurance policies to zero, insurers cannot avail input tax credit. Earlier, insurers availed the income tax credit on GST on insurance premiums and used it for brokerage, commission and overhead purposes,” Gaurav Gupta, Chief Operating Officer of Edme Insurance Brokers Ltd, said in an interview.
“How much of the GST cut benefit will be passed on to consumers will depend on how the insurers adjust their pricing to align with the absence of input tax credit. The entire benefit might not be passed on, but the best possible option would be passed on to the consumers,” he said.
“Insurance companies will take some time to come to a consensus on pricing, especially on new products. The rate cut benefit will be passed on renewals, even though there might be revision in renewal terms,” Mr. Gupta said.
He said in one or two months, insurers would sort out the pricing and the penetration for individual policies to increase, especially from January, when people start looking at buying policies for tax purposes.
Jonika Jain, Chief Human Resources Officer (CHRO), Edme Insurance Brokers said with the acquisition of UK-based UIB’s India operations and merging with itself, the company has become the third largest insurance brokers in India providing insurance and risk advisory services to businesses and individuals across commercial insurance, reinsurance and personal coverage.
She said the company would increase its head count to 1,000 from 500 in five years and also expand its operations in UAE, UK and Singapore.
Published – September 19, 2025 02:27 pm IST
