GST loot and commission cuts must stop, or insurance agents across India will be forced to take to the streets in protest

Mumbai: Despite Prime Minister Narendra Modi waiving GST on life and health insurance, private insurance companies continue deducting 18% GST from the commissions of general insurance agents and have already imposed a 33% commission cut effective April 1, 2025. This amounts to a direct assault on the livelihood of lakhs of agents across the country. If these exploitative practices are not stopped, nationwide protests will be launched, warned the General Insurance Agents Association (GIAA), the General Insurance Agents Federation Integrated (GIAFI), and the Association of LIC Agents (ALICA).

Rural and semi-urban agents have been pushed into severe financial distress, creating a serious survival crisis. While insurance companies continue earning profits, agents face shrinking income and heavy deductions. This discrimination has become unbearable. Agents do not receive pension, medical insurance, leave benefits or risk protection, yet they are the backbone of the insurance sector, reaching the most remote villages. Today, many agents are battling despair, insecurity and even suicidal thoughts as a result of this financial pressure. This exploitation must end.

In a statement dated October 18, 2025, the General Insurance Agents Association said that while waiving GST on life and health insurance is welcome, slashing agents’ commissions by 33% is daylight robbery. In a letter dated October 8, 2025, the General Insurance Agents Federation Integrated reiterated that GST cannot be deducted from the commissions of agents who are not registered under GST, and demanded that the commission cuts imposed from April 1, 2025, be withdrawn and a joint advisory committee be formed to protect agents’ rights. However, insurance companies continue to ignore concerns, and the Finance Ministry has shown no intervention so far.

We therefore urge the Prime Minister and Finance Minister to immediately stop the unjust deduction of GST from agents’ commissions, issue clear orders prohibiting GST cuts for non-registered agents, reverse the commission cuts, cancel the 33% reduction enforced since April 1, 2025, and implement social security measures including pension, medical cover and risk protection. The IRDA must be directed to ensure that private companies safeguard agents’ interests. If justice is not delivered, insurance agents will take to the streets across India. IRDA must stop acting solely in favour of insurance companies and recognise the rights and dignity of the agent community.