Quick Summary
Life insurers are witnessing a sharp rise in demand for pure protection (term insurance) plans after the government removed Goods and Services Tax (GST) on individual term policies from September 22. Major insurers such as HDFC Life, Axis Max Life, and SBI Life have reported strong momentum in their protection segments, driven by improved affordability and growing consumer awareness. Affordability Drives First-Time Buyers The GST exemption has made term insurance significantly more cost-effe
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FAQ :
The removal of Goods and Services Tax (GST) on individual term insurance policies from September 22 has made them more affordable, leading to a significant increase in demand.
Major insurers such as HDFC Life, Axis Max Life, and SBI Life have reported strong growth in their protection segments following the GST exemption.
HDFC Life recorded over a 50% year-on-year growth in retail protection during September alone, and its protection business grew 27% in the July-September quarter.
Insurers expect the GST exemption to further accelerate demand, especially among younger customers, and help reduce India's significant protection gap.
India's protection gap stood at 83% in 2019, which was the highest in the Asia-Pacific region.
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