Daijiworld Media Network – New Delhi

New Delhi, Sep 10: Some insurance companies and online brokers have started offering health and life insurance policies to Indians without GST, nearly two weeks ahead of the government’s goods-and-services-tax (GST) reforms. From September 22, GST on health and life insurance will be reduced from 18% to 0%, making policies more affordable.

The early offers allow customers to purchase policies now, with coverage beginning September 22, without paying GST at the time of purchase. Anand Roy, CEO of Star Health and Allied Insurance, described the GST exemption on health premiums as a “landmark reform” and emphasized, “Health insurance is a necessity, not an optional expense. Starting now, customers can buy policies without GST.”

Along with Star Health, online platform Policybazaar is also providing early benefits of the GST cut to buyers. Analysts say the reduction in premiums could encourage families to opt for higher sums insured, supporting the government’s vision of “Insurance for All by 2047.” While insurers may face increased costs due to loss of input tax credit, the move is expected to significantly improve affordability for households.