GST : Effect on Insurance

I just received letter from Great Eastern Takaful. It is not good letter as it inform that insurance effect on Goods and Services Tax (GST). The letter written such as :-

Dear Sir/ Madam

Certificate No. : *****
Plan Name : i-GREAT DAMAI
Person Covered : ********

Malaysia will implement the Goods and Services Tax (GST) effective 1 April 2015. This new multi-tiered tax structure will replace the current 10% sales tax and 6% service tax.

Under the new tax system, the products and charges listed in Appendix I will subject to GST.

Your current contributions and tabarru’ charges for products and services (if applicable) are GST exclusive. Once GST has been implemented, if the products or services are deemed taxable under the new tax system, the Takaful Operator will be charging the GST on top of your current contributions and tabarru’ charges.

Attached together with this letter is the endorsement in respect of GST implementation. The endorsement will serve as part of the certificate contract.

Please take note if you are using any payment method listed below :

– For auto-debit facility or banker’s order, kindly arrange to increase the deduction limit with your respective banks.
– For ‘Biro Perkhidmatan Angkasa’ (BPA) deduction, please remit your latest pay slip to the nearest branch.
– For Financial Process Exchange (FPX), kindly fill in the new form with new contribution amount

For future retrieval of GST tax invoices, you may log on to our customer portal at www.igetintouch.com.my for your tax invoice printing. If you have not registered as an active user, we encourage you to do so now via our website at www.i-great.com under Customer Care and look for igentintouch link.

If you require further assistance, please contact your Agent. Alternatively, you can email to us at i-greatcare@i-great.com.my or contact our Careline at 1 300 13 8338 or visit our branch office nearest to you. We assure you of our best services at all times.

Please log on to the Royal Malaysian Custom’s website at www.gst.customs.gov.my for more information on GST.

…………………………………………………………………………………………………

Great Eastern Takaful Berhad

ENDORSEMENT

This endorsement forms part and parcel of the Certificate.

1. GOODS AND SERVICES TAX

GST Malaysia

1.1 In this Clause :
1.1.1 “GST” means the goods and service tax.
1.1.2 “GST Act” means the Goods and Service Tax Act 2014 and shall include any by-laws, instruments, orders, rules and regulations made thereunder.
1.1.3 Unless otherwise defined herein, the terms used in this endorsement shall have the same meaning as defined in GST Act.

1.2 This Clause shall only apply upon the implementation of the GST Act in Malaysia which may be revised by the Takaful Operator from time to time towards compliant with the prevailing GST Act at the material time.
1.3 Unless otherwise expressly specified in this Certificate, the contribution or additional contribution or tabarru’ or service charge or other sums payable or consideration to be provided by You under or in connection with this Certificate is exclusive of GST (‘GST-exclusive consideration’)
1.4 If this Certificate is a taxable supply which is chargeable under GST Act. You are obliged to pay the Takaful Operator the GST payable on that supply at the prevailing GST rate. This obligation covers Your liability under this Certificate (including any rider, supplementary benefits, reinstatement or variation made to this Certificate) and includes contribution, additional contribution, tabarru’, service charge, other sums payable or consideration for any other taxable supply.
1.5 If an adjustment arises in connection with any taxable supply made or deemed to be made under or in connection with this Certificate, the amount of GST payable for such taxable supply will be recalculated to reflect the adjustment event and the payment for the difference thereof will be made by You to the Takaful Operator or by the Takaful Operator to You, as the case may be.
1.6 If a party must reimburse the other party for a cost or expense, the amount to be reimbursed shall be calculated net of any GST input tax credits that the party seeking reimbursement is entitled to in respect of the cost or expense incurred, on the basis the reimbursement is subject to GST

**END OF PAGE**

The letter also include Appendix which show about the product that being charges GST. It is not good for my budget as we don’t know how much to add. Hopefully it is not too much charges in my insurance policy.

There are many ways to sign up for an insurance plan in this time and
Buying a life insurance policy (or policies) these days can become a slightly stressful experience

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