1. Do I have to pay GST on my HHO policy?
GST on HHO premium will be charged at 6% from 1 April 2015.
2. Period of Insurance for my HHO Policy is from 30 March 2015 to 29 March 2016. Will the Insurance Company charge me for GST for the period from 1 April 2015 to 29 March 2016? Especially since the Insurance Company has included a notice on GST on my policy.
Currently Customs has provided tax relief for basic fire policy that provides coverage for the building only and covers loss or damage by fire, lightning and explosion.
HHO is a more comprehensive policy that comprises of basic fire, lightning, explosion and other perils like flood.
Please note that at this juncture, Customs has not officially advised tax relief for HHO.
Hence GST will be charged on your HHO policy.
3. Then can I extend my policy perpetually so that I don’t have to pay GST?
GST will be charged for extensions where the period of coverage begins 1st April 2015 onwards.
4. What happens if I decide to increase my policy coverage mid term?
If the effective date of the increase in policy coverage is from 1 April 2015, GST will be charged on the additional premium.
5. If I sell my house and cancel the HHO policy, will MSIG refund my premium together with the GST?
Yes, only if GST has been charged and you have paid the GST amount, we will refund the premium and GST.
No GST refund, if there is no GST charged with the initial premium.
6. Is GST chargeable on additional perils for example Riot, Strike & Malicious Damage (RSMD)?
7. Do I pay GST if I purchase my HHO from a non-GST registered agent?
GST is chargeable irrespective of the GST status of the Agent.
GST is charged on the HHO policy and collected by the Insurance Company on behalf of Customs.
8. Life insurance is exempted from GST. Do I pay GST if I purchase my HHO insurance via a life agent?
HHO policy is a general insurance product. Hence you will need to pay GST on your HHO premium.
9. What does MSIG do with the GST I’ve paid?
MSIG collects GST on behalf of Royal Malaysian Customs Department & pays to Customs on monthly basis.
10. What about Stamp Duty?
MSIG collects Stamp Duty on behalf of Inland Revenue Department & pays Inland Revenue.
11. Is there any GST on the Stamp Duty?
No. Stamp Duty is a government tax and is not subject to GST.
12. When I renew my HHO policy, the sum insured for contents should include or exclude GST?
It should include GST.
13. I am a Singaporean and I have a property in Malaysia. Do I have to pay GST on the HHO policy?
Yes. GST on HHO premium will be charged at 6% from 1 April 2015.
GST is law and therefore forms part of the terms & conditions of the policy. Failure to pay GST means MSIG reserves the right to cancel or void the policy
The FAQs provided herein is for general information only and not intended to constitute advice on specific matter relating to GST. Please consult your tax agent on the application of GST to your particular circumstances.