Goods and Services Tax - GST
Read more about how GST will affect your premiums.
GST (Goods and Services Tax) is a consumption tax to replace the Government Sales Tax and Service Tax. It is tax imposed on the taxable supply of goods and services unless specifically exempted.
When will GST be implemented?
GST will be implemented at the rate of 6% effective from 1st April 2015 based on Budget 2014 announcement.
Has Tokio Marine Life Insurance Malaysia Bhd. registered for GST?
Yes, Tokio Marine Life Insurance Malaysia Bhd. has registered to collect GST on behalf of the Royal Malaysian Customs and Excise. Our GST registration number is 000389644288.
Once GST is implemented, do I need to pay more for my insurance?
Premiums paid for all insurance policies/riders that provide coverage on life are exempted from GST. There will be no additional charges to your insurance premiums. However, premiums for all non-life insurance and supplementary non-life riders attached to life policies such as PA insurance, medical & health insurance and critical illness insurance without death benefit are not exempted and thus subject to GST.
If I am working overseas will I be charged with GST as well?
Yes. GST is applicable on non-exempt insurance premiums of insurance policies issued in Malaysia.
If I have paid for service tax, do I still need to pay for GST?
Service Tax is applicable to insurance premiums paid by business organizations. Service Tax is not applicable to premiums of insurance policies purchased and paid by individual. For premiums due on or after 01/04/2015, Service Tax will no longer be applicable as it is replaced by GST. If your insurance requires you to pay Service Tax and you have already paid your insurance premiums that is due before 01/04/2015 together with Service Tax, you are not required to pay for GST for that same premiums. However, your next premiums due on or after 01/04/2015 for non-life insurance will have GST imposed.
If I have made arrangements with my bank to pay my insurance premiums, what shall I do?
If you have arranged your own Standing Instruction (“SI”) with your bank for the remittance of premiums to us, kindly contact your bank to increase the SI amount to include the GST. However, we recommend that you convert your Standing Instruction to our Auto Debit facility as this method allows us to adjust your premiums deduction automatically. Please contact your agent or visit our branch for more information on this auto debit facility.
What do I need to do if my insurance policy is subject to GST and I have made earlier arrangement to pay my insurance premiums with Tokio Marine Life?
If you have signed up for recurring Direct Debit arrangement with MyClear, Maybank, Public Bank, RHB Bank or BSN, you need to contact your respective bank to increase the maximum amount mandate maintained by the bank if applicable. If you have signed up for credit/debit card auto debit facility, you do not need to take any further action. We will debit your premiums amount together with GST from your Credit/Debit card.
If I have paid my insurance premiums in advance of its due date which is after April 1, 2015, will GST be imposed on my premiums?
GST is applicable for non-exempt insurance premiums from April 1, 2015 irrespective of when it is due or paid. If you have paid your insurance premiums to us in advance, we will place it as a premium deposit and only apply it when your premiums is due. If your premiums is due on April 1, 2015 or later, we will likewise deduct the GST from your premium deposit. As a result of this, your premium deposit may be insufficient for both premiums and GST. If you have paid a premium deposit for a number of premiums that is due at future due dates, the premiums deposited will be applied to both the premiums and the GST. Thus the premium deposit may be insufficient to offset your future premiums.
If my monthly premiums is due on 10/03/2015 and I made payment on 28/03/2015 which is before GST became effective, do I have to pay for the GST on this premiums?
For the non-exempt premiums, GST will apply proportionately on the part of the premiums where the coverage is from 01/04/2015. To illustrate this, please refer to the diagram below:
Is there any GST imposed on policy values, benefits or claims paid to me?
GST will not be imposed on the following payments:
Policy loan, Premium loan, Fund withdrawal, Cash Bonus / Guarantee Cash payment, Insurance Claim, Surrender, Maturity, Interest on NFL.
Note: If service charge or fee is imposed on any service request, GST will be imposed on such charge or fees.
Who should I contact for enquiries and assistance with GST?
Please contact our customer service hotline @ 03- 20596188 or email to us via email@example.com. For more information, you may log on to Royal Malaysian Custom’s website at www.gst.customs.gov.my
For Investment-Linked Policies
1. GST will only be imposed on the cost of insurance of the non-exempt riders under the investment-linked policy. GST is also imposed on policy fees (if any) that may be charged on the investment-linked policy.
2. Unless the amount of GST imposed is significant, such as when there are many non-exempt riders attached, it is not normally expected that the premiums will need to be increased. Thus for any auto debit (where we give the debit amount instructions) or if standing instructions are made by the policy owner directly, it is normally not necessary to increase the premiums payment. However, as unit prices and thus fund values are subject to market conditions you are advised to review the available fund balances from time to time to ensure that your investment-linked insurance is sustained.