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Not “All types” of Life Insurance GST-Free

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]

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