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Life insurance company

Life insurance company LIC has benefited from the implementation of new GST rates. The company received an investment of more than Rs 1,100 crore on the first day after taxing the life insurance policy. Which is almost doubled since last month. In August this year, a monthly premium of Rs 5,000 crore came from retail policy holders. Most of the sale from regular endowment products, no new product was launched.

LIC officials said the initial sales of September were lower as compared to last year, as the agents and customers were waiting for the tax change to be implemented from 22 September. The demanded demand came to light after the tax is removed. However, the trend of the entire insurance industry will be clear only after a few months. The GST Council has put all individual life and health insurance policies in zero tax category, which came into force from 22 September, 2025. This discount will be available under a new two-time structure. This includes schemes such as Term, Unit-Linked, and Traditional Life Insurance as well as family floater and senior citizen health cover.

Companies benefit

The premium of insurance companies has increased in the last few months. Due to tax exemption, insurance companies are hoping that low prices will motivate some customers to increase their annual premium amount. But this is less likely to happen in the term plan, because coverage there depends more on income and safety needs.

The new business premium during April-August increased by 6.2% compared to last year. The reason for this was to increase the premium amount, even though the increase in the number of policies was slow. According to the Life Insurance Council, private insurance companies increased by 10%, while LIC was 3%. Overall, the new business premium increased to Rs 1,63,461 crore in April-August 2025, which was Rs 1,54,193 crore last year. But the number of policies decreased by 8.9%.