ICEU Applauds GST Relief on Life and Health Insurance Premiums

Speedy Summary

• The GST Council has decided to exempt individual life and health insurance premiums from the 18% GST.
• The insurance Corporation Employees’ Union (ICEU) of Machilipatnam Division welcomed this decision, stating it would improve access to insurance for the masses.
• ICEU General Secretary G. Kishore Kumar and other office-bearers highlighted their long-standing efforts in advocating for this change, including meetings with 400 Members of parliament, union Finance Minister Nirmala Sitharaman, and NITI-Aayog members.
• ICEU emphasized that this exemption aligns with the goverment’s goal of achieving universal insurance coverage by 2047.

Indian Opinion Analysis

The removal of GST on life and health insurance premiums is a notable policy shift that could positively impact India’s insurance penetration rates. As pointed out by ICEU representatives, high taxation on premiums may have been a deterrent for many individuals seeking coverage. This exemption could make policies more affordable and accessible across socio-economic segments. Furthermore,aligning fiscal policy with long-term national goals-such as universal insurance coverage by 2047-illustrates a strategic approach toward broader financial security initiatives.

However, triumphant implementation will rely on stakeholders like insurers optimizing offerings while encouraging uptake among underinsured populations. Monitoring industry trends post-GST removal could provide valuable insights into how effective this measure is in expanding India’s insured populace.

read more: Published – September 06, 2025