The Department of Financial Services (DFS) Secretary, M Nagaraju, has urged insurance companies to proactively launch outreach campaigns to publicise the recent reforms that make insurance more affordable and accessible.
In a meeting held on Monday with senior officials of the DFS, the Insurance Regulatory and Development Authority of India (IRDAI), chairpersons of public sector insurers, chief executives of private sector life and non-life insurers and representatives from the Life Insurance Council and the General Insurance Council, Nagaraju stressed the importance of passing on the benefits of the reforms directly to policyholders.
The directive follows the landmark decision of the GST Council in its 56th meeting on September 3, 2025, to exempt GST on all individual life and health insurance policies. According to the finance ministry, this reform is expected to significantly reduce costs for consumers, making insurance products more accessible to the masses.
"The measure is expected to make insurance more accessible and cost-effective, thereby strengthening financial security and enhancing insurance penetration across the country," the ministry said in a statement.
The move is seen as a major step toward expanding financial inclusion, especially in rural and semi-urban areas where insurance penetration remains low. Industry experts believe that the GST exemption will encourage more individuals to purchase life and health coverage, ensuring better protection against unforeseen risks while easing the financial burden on households.
With the finance ministry's directive, insurers are now expected to roll out targeted campaigns highlighting these benefits, ensuring transparency and awareness so that both existing and prospective policyholders can avail themselves of the reduced costs.
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