General Insurance News

All four PSU general insurers to pass full GST relief to policyholders

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State-run insurers New India Assurance, United India Insurance, National Insurance and Oriental Insurance have announced that customers will receive the entire GST relief on eligible insurance products in their premium invoices. The companies said they will absorb the loss of input tax credits (ITC) on their own balance sheets rather than offset it through higher base premiums, ensuring a visible reduction in what customers pay.

The commitment applies to new policies and renewals issued after the GST rate change takes effect, with revised pricing to be reflected on policy schedules and renewal notices. Group clients have been told that existing terms will be reworked at renewal to pass through the tax benefit.

Management across the four insurers said the move supports affordability and aligns with the government's objective of expanding insurance penetration. Policyholders have been advised to review revised premium breakups and seek clarifications from their servicing branches if the GST relief is not reflected.

India's non-life insurers grow 16.3% in August 2025

India's non-life insurance industry logged 16.3% year-on-year premium growth in August 2025, sustaining the sector's double-digit momentum. Executives cited steady demand in health and motor lines, with retail health renewals and new-to-insurance buyers contributing alongside improving auto sales. Commercial lines-fire, engineering and liability-also supported growth as infrastructure and SME activity picked up.

Private insurers continued to outpace state-owned peers on distribution reach and digital onboarding, while public sector carriers benefited from their extensive networks and group business. Insurers said the focus remains on pricing discipline and claims management, noting elevated medical inflation and weather-related losses through the monsoon.