Pocket-friendly Premiums

Health and term insurance got a major boost with the recent GST rate revision.

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Across sectors, rates on health and term insurance have been reduced from 18 per cent to zero taxation. Despite initial concerns on input tax credits for insurance companies, the marketplace has responded with significant cuts in policy premiums in the last one month. Policybazaar.​com reported a twofold surge in traffic for health and term insurance. This exceeds levels witnessed during the pandemic, as per the company.

Across health insurance, there has been an average 11 per cent cut in premiums for the policies listed in this page and compared to pre-GST rates. ICICI Lombard's Elevate, Care Health's Care Supreme, and Niva Bupa's Health Reassure have declared an average 15 per cent reduction in premiums. Savings for policyholders in term insurance are even higher. The nine plans listed on this page have reported an average 18/20 per cent reduction in premiums for men/women policies. Existing or prospective policyholders can choose to pocket the savings offered by the GST rationalisation. Policyholders can also enhance their existing policies with additional features in view of the lower cost of the base policy. We detail some critical riders or features that should be part of the enhanced policies.