Government of India Emphasizes Passing on GST Benefits to Insurance Policyholders

Strategic Insights -

The Government of India, under the Department of Financial Services, has been working to ensure that the benefits of the Goods and Service Tax (GST) exemption on individual life and health insurance policies are fully passed on to existing and prospective policyholders. Secretary M. Nagaraju chaired a meeting with senior officials and representatives from public and private insurance companies to discuss the implementation of the GST exemption approved by the GST council in September 2025. The meeting aimed to ensure that the benefits of the tax reduction are fully passed on to policyholders and to make insurance more affordable and accessible.

Key Takeaways:

  • The GST exemption on individual life and health insurance policies was approved by the GST council in its 56th Meeting held on 3.9.2025.
  • The Secretary, Department of Financial Services, Shri M. Nagaraju, emphasized the importance of passing on the benefits of the GST exemption to both existing and prospective policyholders.
  • Insurance companies were directed to proactively undertake outreach campaigns to publicize the reforms and highlight their positive impact on making insurance more accessible and affordable.
  • The meeting was attended by representatives from Life Insurance Corporation of India, New India Assurance Company, Bajaj Allianz Life Insurance Company Limited, ICICI Lombard, and Aditya Birla Sun Life Insurance.
  • The measure is expected to strengthen financial security and enhance insurance penetration across the country.
  • The government has taken steps to ensure that the benefits of the GST exemption are fully passed on to policyholders and to make insurance more accessible and affordable.

Statistics:

  • The GST exemption on individual life and health insurance policies was approved by the GST council in its 56th Meeting held on 3.9.2025.
  • The meeting was attended by representatives from major insurance companies, including Life Insurance Corporation of India, New India Assurance Company, Bajaj Allianz Life Insurance Company Limited, ICICI Lombard, and Aditya Birla Sun Life Insurance.

Sources:

  • Government of India (15 SEP 2025). Shri Nagaraju Stresses Passing on benefits of GST exemption to Insurance Policyholders.