Hyderabad: Deputy Chief Minister and Minister of Finance and Energy Mallu Bhatti Vikramarka emphasized that a mechanism should be evolved to ensure that the benefit of exemption of GST on life insurance and health insurance policies is passed on to the end-customers and reaches the insurers, rather than enriching the insurance companies.

Bhatti, who is part of Group of Ministers constituted by GST Council to examine and make recommendations on reduction or exemption Life and Health insurance services, attended a meeting in New Delhi.

During the meeting, the matter has been discussed in detail about exempting all individual life insurance policies and all individual health insurance policies, along with reinsurance thereof. While welcoming the proposal, the Deputy Chief Minister stated that this move will certainly increase the penetration and density of insurance. It is only in such situation that the purpose will be served, though the States will lose some portion of revenue which would have been otherwise utilized for other welfare schemes. He also stated that Telangana government is already helping 95 lakh families by providing insurance services.