IT IS NOT TRUE that all the life insurance products in Malaysia are exempted from the goods and services tax (GST) which comes into effect on April 1, 2015.

The GST exemption is only applied to the premiums of the whole life insurance, endowment insurance, child insurance, term insurance (including mortgage insurance), education insurance and annuity products.

HOWEVER the premiums of the life insurance products and riders such as critical illness insurance, medical insurance, health insurance, personal accident insurance and waiver of premium rider ARE NOT EXEMPTED according to the GST exemption list.

We urge the Malaysia government to exempt the premiums of all the life insurance products and riders from the GST.