After GST exemption, retail policy base rises 11% for Star Health

Kolkata: The exemption of individual health insurance premiums from GST appears to have encouraged both wider policy adoption and higher levels of protection, with Star Health reporting an 11 per cent rise in its retail policy base and an increase in the average cover on fresh policies in the 11 months since the tax was scrapped, an official said.

The average sum insured on fresh retail health indemnity policies rose by about Rs 1.4 lakh to Rs 13.7 lakh during October 2025-August 2026, compared to the year-ago period, the insurer said.

Goods and Services Tax (GST) on individual health insurance premiums was brought to zero from 18 per cent with effect from September 22, 2025, as part of the government's indirect tax rationalisation measures aimed at making insurance more affordable and widening coverage.


"The GST reform has made health protection more affordable for Indian families. One year on, we are witnessing wider participation across age groups and geographies, along with customers choosing higher levels of protection," Star Health whole-time director Himanshu Walia told PTI.

The insurer said the growth in its retail portfolio accelerated to over 11 per cent during October 2025-August 2026, from around two per cent in the corresponding period a year earlier.

It also reported an increase in new-to-insurance customers, along with greater penetration in tier II, III and IV markets.

Consumers in the 26-50 age group accounted for more than 80 per cent of net policy additions during the period, the official said.

Insurance regulator IRDA is yet to come out with growth numbers of coverage and average sum insured for the health segment.

The company said it would continue to focus on widening access to health insurance as India works towards the national objective of "Insurance for All by 2047".