Particle.news
Download on the App Store
3 ARTICLES
·
last mo.

After Zero GST, Demand for High-Value Health Insurance Jumps 38%, Policybazaar Says

Early data from the aggregator shows larger sums insured with more add-ons following the government’s waiver on individual premiums.

Decoding the New GST Rules on Health Insurance Premiums: Will it Really Lower the Cost of Your Mediclaim Policy?

Overview

  • The average cover rose to Rs 18 lakh from Rs 13 lakh, with 45% of buyers choosing Rs 15–25 lakh and only 18% opting below Rs 10 lakh.
  • Add-ons gained traction, including Day-1 pre-existing disease and critical illness covers up about 25% and 20% respectively, while riders on renewals increased 50%.
  • Tier-2 cities moved toward higher protection, as the share selecting Rs 15–25 lakh cover rose by 10.2% and low-coverage choices fell to 16.8% from 24.1%.
  • Upgrades span age groups, led by the 36–45 and 46–60 cohorts, with high-sum plans among seniors 61–75 and 75+ rising 11.54%.
  • The zero-GST policy began on September 22, 2025 for individual life and health premiums, while group policies remain taxed at 18% and net savings can vary by insurer pricing and input-credit limits.