LIC Aims to Offset GST Impact Through Expense Management and Sales Growth

Imagine the government made some insurance policies, like basic health and term life insurance, tax-free to make them cheaper for people.

This is good for customers, but it made things harder for insurance companies like LIC.

Normally, companies can get back some of the taxes they pay on things like rent or advertising.

But because these policies are now tax-free, they can't get that tax money back.

This is called losing 'input tax credit'.

LIC hopes to make up for this lost money by selling more policies than before and by being very careful with their spending.

They say they will not raise prices for customers or cut the pay for their sales agents.

They believe they can manage the extra costs and still make a profit, especially since they are seeing good sales in October.

They also have other ways to save money and benefit from investments.

They've also mentioned that they can still get some tax benefits on older policies issued before the tax changes.