Rashtriya Loktantrik Party (RLP) President and Nagaur Lok Sabha MP, Hanuman Beniwal, raised concerns in the Lok Sabha about the rise in base premiums for personal life and health insurance policies despite the government’s GST reduction to zero on these products. Beniwal questioned the Union government’s strategy to address this issue and demanded action against the insurance companies’ pricing practices.
In response to Beniwal’s query, Minister of State Pankaj Chaudhary from the Union Finance Ministry mentioned a meeting held with insurance companies on September 17, 2025, to ensure the full pass-on of GST relief benefits to policyholders. The Insurance Regulatory and Development Authority of India (IRDAI) has been actively monitoring premium rates to guarantee that policyholders receive the intended benefits.
Beniwal highlighted that the removal of GST on health insurance should have directly benefited the public, not the insurance firms. He criticized the companies for increasing base premiums post-GST removal, labeling it a breach of trust and a misuse of government policy. Stressing the importance of health insurance as a necessity, Beniwal urged for stricter oversight by IRDAI to prevent such practices and ensure consumer protection.
