Saffron netas rally behind Gadkari, urge GST waiver on life, medical insurance

Hyderabad: Did the Union Minister of Road Transport and Highways Nitin Jairam Gadkari’s letter to Union Finance Minister Nirmala Sitharaman suggesting removal of GST on life and health insurance stir up a hornet’s nest?

If the goings on are any indication, leaders within and outside the saffron party circles are batting for Nitin Gadkari’s suggestion based on a representation from the Nagpur Divisional Life Insurance Corporation Employees Union.

Cautious about not knowing the party's official line on the issue, a senior BJP leader and former minister told The Hans India, "Such representations are received ahead of the budget.

The representations were sent to the concerned ministries for consideration. However, this time, Gadkari has rasied a substantial and sensible issue that warrants the attention of the Centre," he added.

Teacher's MLC Alugubelli Narisreddy, however, found fault with Gadkari. He reasoned, “As a Union Minister and cabinet member, he should have discussed in the cabinet rather than coming into public. It could be a propaganda,” he pointed out.

However, others who ideologically toe the line of the saffron party are seeing Gadkari’s move as making people turn towards hitherto not much-bothered issues relating to the actuarial risk metrics of insurance.

Leaders from the Vishwa Hindu Parishad and Swadesh Jagaran Manch opined that redefining the definition of 'family', in insurance is a debatable issue and needs a re-look.

Speaking to The Hans India, an SJM member said, “Gadkari’s suggestion is a sensible one as it provides some relief, at least, to the lower and middle-income groups who pay their premiums every month.”

Further, he said, for example, “At present, the insurance definition of a family is male or female bread earner who is head of the family can take insurance to himself/herself, his or her parents, and children.”

This is how the current quantile risk measure or quantile premium principle working covering insurance for the family as a unit. This metric has a default setting of an imported definition of family in terms of 'micro-family' comprising husband, wife and their children, and the couple's parents.

Seconding this view, a Telangana State BJP executive member pointed out, "Yes! The insurance definition of family has to be redefined in line with the Indian ethos, covering blood relations within the family, i.e., brothers, sisters and other dependent blood relations like cousins.

Currently, when a father and mother who are heads of the family die, “an earning brother or sister cannot take a family policy for all within the definition of a family policy.”

Taking separate policies increases the premium burden. Redefining family would provide an opportunity to broaden the coverage and widen the insurance risk coverage, he said.