- The GST Council recommended, and the सरकार implemented from Sept. 22, 2025, a GST exemption on all individual life and individual health insurance policies, including family floater policies, and their reinsurance.
- The government said this aligns with its “Insurance for All” goal by making insurance more affordable.
- After the exemption, premium collection grew faster: individual life insurance rose 11.2% in Oct–Mar 2025-26 vs 7.7% a year earlier, while individual health insurance (including family floater) surged 29.7% vs 7.0%.
- The Finance Department and IRDAI met insurers and directed them to pass the full GST benefit on to existing and new policyholders.
- IRDAI later confirmed that insurers had not increased premium rates because of the exemption and that the relief had been passed on to policyholders.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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