In a significant relief proposal for individual policyholders, the GST council had exempted GST on individual health and life insurance, with the measures set to be effective starting September 22, 2025. Several health insurance companies have already rolled out health insurance policies without charging GST. But, with a rider, coverage starts from September 22.
ICICI Lombard's webpage says that health insurance is now GST free. "Buy today- coverage starts September 22." Niva Bupa too exempts GST but states that the policy will start September 22. Tata AIG provides an option to the customer to start the policy from September 22 to avail 0% GST. Aditya Birla Health Insurance portal says that the company is updating their systems to comply with GST rate change to pass on the benefit- You can save 18%, if you choose to start your policy from September 22, 2025, it says.
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Screenshot Niva Bupa
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Not all companies have rolled out the option. Care health insurance specifies that premiums still include 18% GST, while Star too continues to charge 18% for GST.
Nikhil Jha, founder at Hercules Insurance Advisors said that several insurance companies have begun providing health insurance covers without GST, but with risk assumption or the cover start date starting September 22. Companies will complete the back-end work for onboarding the customer, however, the customer will need to risk no coverage up until then, he said.
If your policy is up for renewal anytime till September 22, if you renew in the grace period i.e after September 22, GST charged will be zero though insurance cover will be unavailable up until then.
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