Fin min says insurers didn't raise premiums post GST exemption on policies
This story was originally published at 14:48 IST on 27 July 2026
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NEW DELHI – The goods and services tax exemption on all individual life insurance policies and all individual health insurance policies "has directly benefited the end users by reducing the overall cost of insurance," Minister of State for Finance Pankaj Chaudhary said Monday. "Although, the insurers are required to reverse the input tax credit attributable to these exempt supplies...they have confirmed that they did not increase the premium rates after the rate revision," Chaudhary said in his written response to a question in the Lok Sabha.
At its 56th meeting in September last year, the GST Council had recommended granting exemption on individual life insurance policies and individual health insurance policies, including family floater. The proposal was implemented from Sept. 22, 2025.
Chaudhary said, the growth in individual life insurance was 7.7% in Oct-Mar period of 2024-25 (Apr-Mar), while the same increased to 11.2% during the same period of FY26. Similarly, individual health insurance, including family floater, was growing at 7.0% in Oct-Mar period of 2024-25, which increased to 29.7% a year after that.
"Insurance Regulatory and Development Authority of India has received confirmation from all general, health and life insurance companies in January 2026 that they have not revised premiums on account of GST exemption and that the relief granted by government has been duly passed on to the policyholders," Chaudhary said. End
Reported by Sagar Sen
Edited by Akul Nishant Akhoury
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