Sales of specific segments of insurance policies, such as term and health covers, have surged post-GST revision coming into force dated September 22. The rise in sales is also attributed to the numbers for September came in weak.
People appear to time their purchases based on a clarification from the finance ministry, which stated that the incidence depends on the date the premium is paid, rather than on other factors.
From the data of the insurance regulator, a 5.7% drop was recorded in the first year premiums concerning individual regular premium policies. Despite the consumer not purchasing in the first half of Sept, there has been an increase in sales post-GST exemption.
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Since the GST revision declaration, a rise in the sales of health insurance was seen across India, showing the rising consumer interest and intent to purchase.
Engagement and inquiries have increased for term insurance has been risen. Affordability has surged from the exemption, and it has supported the relevance of pure protection products in overall financial planning. The surge in average demand from the pre-GST baseline (until Sept ’25) has exceeded even the rise seen in the pandemic years.
Finance ministry, no GST is to be charged on all individual life and health insurance policies, including reinsurance of such covers. From 22nd September 2025, the exemption has come into force.
