Around 2 lakh retired lenders went with this group policy since in 2015.|Picture Credit: Thicha Satapitanon
A High Court choice giving interim relief on the applicability of GST for group insurance coverage of bank retired people is most likely to alleviate the concern on elderly people.
While the GST Council has actually not excused GST on group medical insurance policies, a Kerala High Court has actually passed an interim stay order recently to exempt GST on group policies of retired lenders. The relief approved is not yet irreversible and undergoes additional Court hearings. Specialists keep in mind that if promoted completely and reproduced by courts nationwide, it will be a huge relief to retired lenders who choose such group policies.
The writ petition was submitted by the All India Bank Pensioners & & Retirees Confederation and other people in relation to the Indian Banks’ Association (IBA) group medical insurance policy collectively handled by IBA and National Insurance Co.
Around 2 lakh retired lenders selected this group policy since in 2015.
… there will be an interim order, directing the participants to restore the policies of the petitioners for the existing year without demanding GST. It is clarified that this will be subject to additional orders to be passed by this Court,” Justice Ziyad Rahman stated in an order on October 17, with the next hearing set on October 31.
The order directs a group of banks, consisting of Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, and others, to restore the senior citizens’ medical insurance without GST.
businessline has actually discovered that after the order, just the general public sector bank, Indian Overseas Bank, has actually released a circular to its branches to gather Retirees’ premium for 2025-26 without GST.
‘No action’
Agents of the All India Bank Pensioners & & Retirees Confederation informed businessline That there is no action from other banks. They have actually likewise composed to the IBA to release an advisory on the compliance of the interim order to supply them relief. “The whole premium is paid by us seniors and not by banks and for this reason these need to be provided the very same GST treatment as private policies,” they stated.
Raghavan Ramabadran, Executive Partner, Lakshikumaran & & Sridharan Attorneys, stated that the instructions by the HC marks “a substantial and welcome relief” for the employed class, specifically seniors. “While the legal concern surrounding the meaning of ‘group’, that includes non-employer-employee groups participated in typical financial activities beyond insurance coverage, stays open, the Court’s choice plainly lines up with the more comprehensive objective of making sure budget friendly insurance protection,” he stated.
Another market source informed businessline that while the choice assists maintain the spirit of the Council’s choice to get rid of GST on insurance coverage, judicial examination needs to take it account assistance from the GST Council and IRDAI to stabilize all the elements.
Narendra Bharindwal, President, Insurance Brokers Association of India (IBAI), stated that though the GST Council’s choice is clear on group policies, from a social equity viewpoint, extending the waiver to group health renewals for such seniors would line up with the spirit of the Council’s choice.
The MD of a basic insurer stated that a court can not take a get in touch with a policy matter as the choice rests with the Government, however the retired teller can request their particular banks to foot the GST element as a gesture of thankfulness.
With inputs from Shishir Sinha and Naga Sridhar
Released on October 26, 2025
