Insurance Stocks Surge as GST Council Exempts Health and Life Insurance Premiums

Shares of major insurance companies, including !LIC,

ife, upa, and ife, rallied up to 5% in today’s trading session following a landmark decision by the 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman. The council announced a significant reform, exempting individual health and life insurance premiums from Goods and Services Tax (GST), effectively reducing the previous 18% tax rate to zero. This move is expected to make health and life insurance more affordable for millions of Indians, boosting demand for insurance products and driving growth for insurers. The GST exemption is seen as a consumer-friendly reform, likely to increase insurance penetration in a country where coverage remains relatively low.