Is the Government Ignoring Insurance Companies' Premium Hike as Alleged by Rajasthan MP Beniwal?
Synopsis
Rajasthan MP Hanuman Beniwal has raised significant concerns in the Lok Sabha regarding the recent hikes in insurance premiums, despite the government's GST reforms. His remarks highlight the ongoing issues of public trust and corporate practices in the insurance sector. Will the government take action to protect consumers?
Key Takeaways
MP Beniwal's concerns highlight consumer rights.
Insurance companies increased premiums post-GST reduction.
Government action is crucial for consumer protection.
Health insurance is a necessity for financial stability.
IRDAI must enforce regulations strictly.
Jaipur, Feb 9 (NationPress) Hanuman Beniwal, the President of the Rashtriya Loktantrik Party (RLP) and MP from Nagaur, posed a question in the Lok Sabha on Monday concerning GST reforms pertaining to personal life and health insurance policies.
He pointed out that while the Union government has set the GST rate to zero for these insurance products, companies in Rajasthan and other states have raised their base premiums by 8 to 12 percent.
Beniwal pressed the Union government to explain the specific actions it plans to take to address this unjust practice by the insurance sector.
In response, Minister of State for Finance Pankaj Chaudhary stated that on September 17, 2025, the Insurance Regulatory and Development Authority of India (IRDAI) conducted a face-to-face meeting with insurance companies to ensure the complete transmission of the GST relief.
The Minister confirmed that insurance companies were strongly urged to fully pass on the benefits to policyholders.
Additionally, he noted that the IRDAI has been closely monitoring the premium rates since September 3, 2025, to ensure that insured individuals obtain the benefits intended.
According to IRDAI data, in January 2026, all general and health insurance firms assured that they had not increased premiums following the Union government's GST relief announcement, and that the complete benefit had indeed been transferred to policyholders.
Moreover, the Minister clarified that for life insurance products, once premiums and benefits are set under a policy, they cannot be modified during the policy's lifespan.
Beniwal asserted that the elimination of GST on health insurance should have primarily benefited the general populace, rather than the insurance firms.
“However, right after the GST removal, insurance companies raised their base premiums by 8 to 12 percent in Rajasthan and other regions, which is a blatant betrayal of public trust and a misuse of the Union government's policy decision,” he stated.
He underscored that health insurance is a necessity, not a luxury, as illnesses already impose significant financial and mental strains on individuals.
The RLP President highlighted that the profit-driven policies of insurance companies are further burdening the average person.
Beniwal mentioned that while the GST relief was intended for consumers, insurance companies have found ways to negate its impact, which goes against public interest.
He also emphasized that the advantages of government reforms are predominantly benefiting corporate profits, a reality the Union government seems reluctant to address.
Beniwal urged the IRDAI to implement stringent oversight and take decisive action against the arbitrary practices of insurance companies.
Point of View
It is essential to acknowledge the concerns raised by MP Hanuman Beniwal regarding insurance premium hikes. This situation reflects broader issues of corporate governance and consumer rights in India. The government must take these concerns seriously to ensure that reforms genuinely benefit the public rather than corporate profit margins. Accountability and oversight from regulatory bodies like IRDAI are crucial in maintaining public trust.
NationPress
10 May 2026
Frequently Asked Questions
What is the current issue regarding insurance premiums in Rajasthan?
Rajasthan MP Hanuman Beniwal has raised concerns about insurance companies increasing base premiums by 8 to 12 percent despite a government decision to reduce GST to zero on these products.
How has the Union government responded to the concerns about premium hikes?
Minister of State Pankaj Chaudhary stated that the IRDAI had a meeting with insurance companies to ensure they pass on the GST relief benefits to policyholders.
What should consumers expect from insurance companies after the GST relief?
Consumers should expect that the full benefits of the GST relief are reflected in lower premiums, as mandated by the IRDAI.
Why is health insurance considered a necessity?
Health insurance is seen as essential because illness can impose significant financial and mental stress on individuals.
What actions can be taken against arbitrary practices by insurance companies?
There must be strict oversight from regulatory bodies like the IRDAI to curb arbitrary practices and ensure consumer protection.
