1. When will GST be implemented?
GST implemented starting from 1 April 2015.
2. What is the current rate for GST?
The current prescribed rate is 6%.
3. With GST, is the service tax still applicable?
No, GST will replace the service tax from 1 Apr 2015 onward.
4. Which insurance product will be subject to GST effective 1 Apr 2015?
GST will be charged on the premiums for medical, critical illness, personal accident and general insurance policies. The monthly cost of insurance (COI) for investment-linked policies and riders under the medical, critical illness and personal accident categories will also be subject to GST at the prescribed rate.
5. How will GST be applied to insurance products in 2015?
There is no impact and you can make payment as usual.
- For policies that were activated before 1 April 2015, GST will still be charged on the portion of insurance cover for the period beginning 1 April 2015 onward.
- However, the Customs Department has offered relief from GST for premiums paid on Motor vehicle insurance and Fire Insurance policies activated prior to 1 April 2015, which span the pre- and post-GST periods.
6. How do I know how much GST is charged to my premium?
For new policies that are activated on or after 1 April 2015, the GST amount will be stated on the policy information page of your new policy contract. You can refer to the Product Disclosure Sheet of the respective products for the total premium amount inclusive of GST payable.
For policies activated before 1 April 2015, the total premium payable, inclusive of GST, will be stated in the premium notices mailed to you. You can obtain the new total premium amount payable (inclusive of GST) on or after 1 April. For this, you can contact your life planner, visit our nearest branch office or call our Careline at 1300 88 1899.
7. If I don’t pay the GST charged for my policy, what will happen to my policy?
Full payment of the total premium amount payable (inclusive of GST) needs to be made to ensure continuous coverage under your policy.
8. Do I have to pay GST for any claims I receive from AIA?
No.
9. Will I be charged GST on my home loan?
No. The repayments of a home loan, i.e. the loan instalment; principal repayment; advance loan payment, late payment charge or monthly interest are not subject to GST.
10. Will processing fees incur GST?
Fees and charges relating to administrative services are subject to GST at the current prescribed rate of 6%.
For new policies that are activated on or after 1 April 2015, the GST amount will be stated on the policy information page of your new policy contract. You can refer to the Product Disclosure Sheet of the respective products for the total premium amount inclusive of GST payable.
For policies activated before 1 April 2015, the total premium payable, inclusive of GST, will be stated in the premium notices mailed to you. You can obtain the new total premium amount payable (inclusive of GST) on or after 1 April. For this, you can contact your life planner, visit our nearest branch office or call our Careline at 1300 88 1899.
7. If I don’t pay the GST charged for my policy, what will happen to my policy?
Full payment of the total premium amount payable (inclusive of GST) needs to be made to ensure continuous coverage under your policy.
8. Do I have to pay GST for any claims I receive from AIA?
No.
9. Will I be charged GST on my home loan?
No. The repayments of a home loan, i.e. the loan instalment; principal repayment; advance loan payment, late payment charge or monthly interest are not subject to GST.
10. Will processing fees incur GST?
Fees and charges relating to administrative services are subject to GST at the current prescribed rate of 6%.
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