Non-Life Insurers Post 2% Premium Growth In September, Bajaj Alliance General Insurance Shines

Non-life insurers have reported a 1.94% year-on-year growth in gross direct premium to Rs 23,430 crore in September, driven by growth in standalone health insurance premium, according to data provided by General Insurance Council on Tuesday.

The largest general insurer, New India Assurance, reported a 3.5% year-on-year increase in premiums to Rs 3,252 crore, while the second largest, ICICI Lombard General Insurance, posted a 6.2% advance to Rs 1,931 crore.

Among other state-owned insurers, United India Insurance reported an 23.36% year-on-year rise, National Insurance saw a decline of 20.12%, and Oriental Insurance's premiums rose 4.45%.

Among major private general insurers, Bajaj Allianz General reported over 31.35% year-on-year growth to Rs 2,218 crore, while HDFC Ergo saw a decline of 3.78% to Rs 1,667.24 crore.

Standalone health insurers reported robust growth of 3.09% year-on-year in premiums in August, reaching Rs 3,492 crore. Niva Bupa Health Insurance logged a 1.45% growth to Rs 592.81 crore, whereas Star Health and Allied Insurance reported a 3.36% year-on-year growth to Rs 1,518 crore.

The government had last month clarified that premiums for individual life and health insurance policies will be exempt from the Goods and Services Tax. This change eliminates the 18% GST previously levied on these premiums, making essential insurance coverage more affordable for individuals and families.

The exemption specifically applies to policies taken out by an individual for themselves or their family members. However, the clarification from the government states that this benefit does not extend to group insurance policies. These are typically offered by employers to their employees. Premiums for such corporate or group plans will continue to be subject to GST as before.

The government has also exempted reinsurance services, the insurance that insurers buy to protect themselves from GST.

However, insurers will face a significant adjustment regarding Input Tax Credit (ITC). For other essential input services such as agent commissions, brokerage, and administrative services, insurers will no longer be able to claim ITC.