A writ petition has been filed before the High Court of Kerala challenging what is alleged to be an unfair practice adopted by an insurance company in relation to the collection of insurance premiums from retail consumers.

The petitioner, Mr. Lawrence Joseph, proprietor of Law Book Agencies approached the Court after noticing that the concerned insurance company had failed to pass on the financial benefit arising from a reduction in the applicable Goods and Services Tax (GST) announced by the Union Government of India. The reduction in GST was intended by the Government to reduce the financial burden on policyholders and ensure that consumers directly benefit from the lowered tax rate.

However, despite the reduction in GST, the insurance company allegedly continued to charge the same overall premium amount during policy renewals. Instead of reducing the total amount payable by customers in line with the tax reduction, the company is alleged to have adjusted the base premium in such a way that the final payable amount remained unchanged, thereby preventing consumers from receiving the intended benefit of the tax reduction.

The petitioner contends that this practice effectively defeats the very purpose of the Government’s tax policy, which was meant to provide relief to consumers. By maintaining the same premium amount despite a reduction in tax, the company is alleged to have retained the benefit of the tax reduction instead of passing it on to policyholders.

Importantly, the petitioner has pointed out before the Court that this issue is not confined to a single individual policyholder. The practice is alleged to be systemic in nature and likely affecting a large number of policyholders across the country, thereby raising serious concerns regarding consumer protection and transparency in the insurance sector. The petitioner has therefore approached the Court not merely for personal relief but also in the larger public interest, highlighting that countless ordinary policyholders may unknowingly be deprived of the benefits intended for them by the Government.

In light of this, the petitioner has also sought appropriate directions to the Union Government of India and the concerned GST Authorities of India to properly enforce the anti-profiteering provisions under the GST framework, which mandate that any reduction in tax rates must be passed on to consumers by way of commensurate reduction in prices.

The writ petition seeks judicial intervention to ensure that the benefit of the GST reduction is actually transferred to consumers and that companies do not indirectly retain tax benefits intended for the public.

The High Court of Kerala has admitted the petition, and the matter is presently pending consideration before the Court.

Advocates for the Petitoner : Adv Raghul Sudheesh, Adv Lakshmi J, Adv Ambily T Venu, Adv Rachel Mary Jacob, Adv Athulya Vaishnavi and Adv Navaneeta Manu