Overview

• All individual life policies—term, ULIP and endowment—and their reinsurance now carry no GST starting September 22, 2025.
• All individual health policies are exempt as well, including family floater plans, senior citizen covers and related reinsurance.
• Major insurers, including LIC and other public sector companies, said they have implemented the exemption immediately.
• Policyholders can see up to an 18% reduction in payable premiums compared with the previous tax-inclusive prices.
• The change arrives alongside GST 2.0 rate rationalisation that consolidates slabs to 5% and 18% with a special 40% band for select items, replacing revenue that totaled Rs 16,398 crore from insurance GST in FY24.