GST Relief a Game-Changer: Paving the Way for Wider Insurance Adoption in India
Mr. Rakesh Goyal, Director, Probus
“The GST relief on individual health and life insurance premiums goes far beyond numbers, it is a decisive step towards making insurance more accessible and India more protection oriented. For decades, affordability has been one of the biggest barriers to insurance penetration, and by easing the cost burden, this move directly addresses that concern. Policyholders will experience immediate relief, which we believe will encourage wider insurance uptake across households and middle-income segments and improve persistency among existing customers.At the same time, as an industry we must acknowledge that the absence of input tax credit could add cost pressures on insurers. However, with greater volumes and wider adoption, the long-term benefits far outweigh the short-term challenges.What we are witnessing is not just a tax change, this reform has the potential to significantly accelerate the journey of insurance from being a product of choice to a product of necessity”.