KUALA LUMPUR, March 6 (Bernama) — Life insurance are exempted from the Goods and Services Tax (GST), says Life Insurance Association of Malaysia (LIAM).[br]
In a statement here today, the association said among the GST-free products were whole life, endowment, child, education insurance and annuity policies.[br]
However, premiums for non-life riders such as critical illness, medical and health and personal accident would be subjected to GST, it said.[br]
LIAM said non-life riders were defined as riders which did not cover natural death.[br]
While premiums for investment-linked policies would not attract GST, the fees and charges imposed on these policies such as policy fees would be subjected to GST, it said.[br]
“For policies paying through direct debit facilities, insurance companies will work with banks to increase the authorisation limit accordingly to include GST,” LIAM said.[br]
LIAM has 16 members — 14 life insurance and two life reinsurance companies.[br]
— BERNAMA[br]
