Insurance Loot: Govt Takes 18% GST While Companies Reject Genuine Claims
Insurance in india is sold as a safety net—but for many citizens, it has turned into a trap of false promises, endless paperwork, and outright rejection. To make matters worse, the government itself takes a hefty 18% GST on premiums, even though people are paying for protection, not luxury. Here’s why india desperately needs strict regulation of health and term insurance companies.
1. Premiums Collected Like Clockwork
Insurance companies never fail to remind you about due dates. SMS, calls, and emails flood your phone when premium time comes. But when it’s time to pay out claims, suddenly everything becomes “under process” or “not covered.”
2. Government’s Double Standard
On one hand, the government tells citizens to insure their lives and health. On the other hand, it charges 18% GST on premiums, treating it like a luxury purchase instead of a basic necessity.
3. Genuine Claims, Shameless Rejections
people pay for years with trust and discipline. But when families need the money most, companies find fine-print loopholes to deny claims. For many, this feels like outright cheating.
4. zero Accountability, Maximum Profits
Insurance companies rake in thousands of crores annually, yet they face no serious punishment for rejecting genuine claims. At worst, they get a slap on the wrist while families suffer.
5. The Urgent Need for Reform
The government must enforce strict claim-settlement rules, fast-track grievance redressal, and impose heavy penalties for unjust rejections. Otherwise, insurance will remain a scam disguised as security.
🔴 Bottom Line: indians are paying twice—once through premiums and again through 18% GST—only to be betrayed when it matters most. It’s time the government stopped protecting companies and started protecting citizens.
click and follow Indiaherald WhatsApp channel