The Finance Ministry has told the Lok Sabha that premium collection in the individual health insurance segment, including family floater policies, registered a substantial growth of 29.7% during October-March 2025-26 — compared with 7.0% in the corresponding period of 2024-25 — following the GST exemption on individual life and health insurance, according to a PIB/A2Z Taxcorp report on July 30.
In the individual life insurance segment, premium collection grew 11.2% during October-March 2025-26, against 7.7% a year earlier. The GST Council exempted individual life and health insurance policies, including family floaters, and their reinsurance, with effect from September 22, 2025.
Minister of State for Finance Pankaj Chaudhary said insurance companies were advised to pass on the full benefit of the exemption to policyholders, and in January 2026 IRDAI received confirmation from all general, health and life insurers that they had not revised premium rates on account of the exemption. Group employer cover, however, continues to attract 18% GST.
Sources: PIB, A2Z Taxcorp (July 30, 2026)