GST council reforms are the spotlight in all media discussions for the past few days. Nil tax on insurance is the most reverred of all announcements till now. On that note, some of the business leaders from the insurance industry have shared their comments on the development.
Ankit Agarwal, Founder and CEO, InsuranceDekho
The GST exemption on life and health insurance premiums marks a pivotal moment for the industry. By removing the 18% tax burden, insurance becomes meaningfully more affordable, particularly for first-time buyers and underserved segments. This move not only reduces financial stress for existing policyholders but also lowers the entry barrier for millions who’ve long remained uninsured. More than a tax reform, this is a behavioural nudge that will encourage families across Bharat to prioritise protection. It’s a powerful and welcome step toward mainstreaming insurance adoption and advancing the national goal of ‘Insurance for All’.
Rakesh Jain, CEO, Reliance General Insurance
The GST Council’s decision to exempt health insurance premiums while allowing insurers to utilise input tax credits is a landmark step that combines consumer benefit with industry growth. This reform will make health protection more affordable for millions of families, senior citizens, and small businesses who often find premiums to be a stretch. By lowering the cost of entry, it encourages more individuals to seek coverage earlier, thereby strengthening the risk pool and improving the long-term resilience of the insurance sector. Insurance is not just a financial product but a safeguard for households against rising healthcare costs and unforeseen emergencies, and this measure will help embed it more deeply into financial planning. We view this as a forward-looking reform that creates a win-win scenario for both consumers and insurers, and one that will contribute meaningfully to the journey of building a healthier and more financially secure India.
Naveen Chandra Jha, MD & CEO, SBI General Insurance
The GST Council’s decision to reduce tax on the healthcare sector marks a transformative step toward greater affordability and inclusivity. At a time when India’s healthcare market is poised for significant growth, this reform acts as a timely catalyst to strengthen the ecosystem by addressing one of the biggest barriers to quality healthcare affordability.
Whether it is making life-saving drugs more accessible or lowering the cost of health insurance, the move directly tackles a long-standing challenge and will enable millions of families to take a crucial step toward financial and medical security.
For the health insurance sector, this change comes at a pivotal moment. As India’s healthcare needs expand and medical risks evolve, the importance of universal health coverage has never been more evident. Health insurance is not merely a financial product, it is a lifeline that protects families, supports well-being, and builds resilience against future uncertainties.
At SBI General Insurance, we view this reform as a strong driver in accelerating India’s journey toward ‘Insurance for All by 2047.’ Our focus will be on leveraging this opportunity to design affordable, accessible, and customer-centric health insurance solutions, while expanding our reach across rural and semi-urban India.
Animesh Das, MD & CEO, ACKO
We view the GST exemption on individual life and health insurance premiums as a significant step towards enhancing affordability and expanding access to financial protection. At ACKO, we believe that affordability is central to driving deeper insurance penetration in India. To ensure that the full intent of this policy is realised for customers, clarity on the treatment of insurers’ input tax credits and transitional arrangements will be essential. ACKO remains committed to working constructively with the Government and industry peers to enable a smooth and transparent implementation.
Chinmay Jain, Director – Insurance & PPI, Jupiter
The decision to zero-rate GST on health and life insurance premiums is a welcome step toward enhancing financial inclusion. By eliminating the tax on premiums, the policy reduces the cost burden on individuals and families, making essential protection more accessible across income groups. For a country like India, where insurance penetration remains relatively low, this change has the potential to expand coverage meaningfully, especially among first-time buyers and underserved segments.
While insurers may need to recalibrate their cost structures due to the loss of input tax credits, we view this as an opportunity to innovate and streamline operations. At Jupiter, our focus will be on leveraging digital platforms, data-driven risk models, and customer-first design to offset these structural changes and deliver more affordable, transparent, and value-driven products. In the long run, this reform not only strengthens household financial resilience but also aligns with the broader national agenda of building a more secure and inclusive financial ecosystem.
Rushabh Gandhi, MD & CEO, IndiaFirst Life Insurance Co. Ltd
The GST Council’s recommendation to exempt life insurance products across all retail categories is a progressive step that will accelerate insurance penetration in India. While the move may lead to some rebalancing in product preferences — particularly between individual term plans and group credit life, the long-term impact will be positive. Despite short-term margin pressure on the industry’s profitability because of the classification under the ‘exempt’ category, we believe the expected growth in premiums will strengthen the industry in the medium term and support sustainable expansion.
Sanjiv Bajaj, Joint Chairman and MD at Bajaj Capital Ltd.
The GST exemption on health and life insurance is a very welcome reform that will make protection more affordable and within reach for millions of people. With healthcare costs rising sharply, this step gives families much-needed relief and helps them secure their future with greater confidence. It also ties in strongly with the national vision of ‘Insurance for All by 2047’, which can only be achieved if more Indians see insurance as an accessible and essential product.
For the industry, this creates an opportunity to widen reach and design solutions that are simpler, more transparent, and aligned with customer needs. By removing a major cost barrier, more households will take their first step into protection, which in turn strengthens India’s overall financial and health security. It is a progressive move that will leave a lasting positive impact.
Amit Ganorkar, MD & CEO, TATA AIG General Insurance
The GST relief on health insurance is a landmark step that will make protection more affordable and accessible for millions of Indians. In the long run, this measure will help bring new customers, especially the missing middle, into the health insurance ecosystem. In a country where out-of-pocket healthcare expenses remain high, wider adoption of health insurance is critical to ensuring families are not financially derailed by medical emergencies. This reform also signals a strong intent to move towards ‘health insurance-for-all and to build a culture of financial preparedness around healthcare.
CA Mandar Telang, Secretary – Bombay Chartered Accountants’ Society (BCAS)
The recent GST announcements mark a true Diwali bonanza for consumers and trade, with a thoughtful rate rationalization and detailed clarity introduced at remarkable speed. The decision to allow post-supply credit notes without the pre-condition of contractual stipulation reflects a pragmatic approach, ensuring a smooth transition into the new regime. The proposed rate rationalization is expected to make consumer goods more affordable, providing a boost to domestic consumption. For the food and agriculture sector, rate correction will ease working capital pressures. Individual Life and Health insurance will become cheaper. The pharmaceutical sector may face challenges from the widened inverted duty structure as APIs remain taxed at 18% against 5% on drugs, though timely 90% provisional refunds can mitigate the burden. The automobile industry stands to gain from reduced rates on small petrol and diesel vehicles and overall balanced tax incidence on high-end models, likely driving demand. Similarly, residential real estate projects should benefit from input tax reductions, lowering overall project costs.
Ashish Goyal, Co-Founder and Whole-Time Director, Fibe
The recent GST rationalisation marks a historic step towards simplifying India’s indirect tax structure and making essential goods and services more affordable. Among the most impactful measures is the exemption of GST on health insurance, which has the potential to transform healthcare access in India. Today, a significant portion of patients remain uninsured or underinsured, often deferring or foregoing treatment due to the high cost of premiums and out-of-pocket medical expenses. Exempting GST on insurance will not only make coverage more affordable but also encourage greater adoption, particularly among middle-income and vulnerable households. At the same time, such a move complements ongoing efforts in the healthcare financing ecosystem that support patients who do not have adequate coverage, ensuring that no one is denied care for financial reasons. This move will create a stronger, more inclusive safety net and enable healthcare decisions to be driven by medical need rather than affordability constraints.
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