Miracle of removal of GST! People rush to buy insurance, companies earn bumper profits

One decision of the government and the picture of the entire industry changed! The impact of removal of GST on life and health insurance products is now clearly visible. There has been a huge jump in the premium collection of insurance companies in the month of November, which shows that after the policies became cheaper, people are now buying insurance extensively.

Last month i.e. in November, a strong increase of 27% was recorded in the retail premium collection of life insurance companies on an annual basis. This growth was seen almost equally in both the country’s largest insurance company LIC and private companies.

Got bumper benefit from removal of GST

Let us tell you that the government had reduced the 18% GST on life and health insurance premium to zero from September 22, 2025. This simply means that now your policy has become cheaper by about 18%. October was the first full month following this decision, and its impact was felt even more strongly in November. The performance of companies like SBI Life remained excellent for the second consecutive month.

Private companies created panic, left LIC behind

While LIC’s premium collection increased by 27% in the month of November, many private companies grew at an even faster pace.

• Bajaj Allianz Life created a stir in the entire market with its stormy growth of 39%.
• The performance of SBI Life was also impressive and it left LIC far behind with a growth of 33%.
• Tata AIA Life and Aditya Birla Sun Life, both registered a strong growth of 28%.
• Max Life grew by 23% and HDFC Life by 20%.
• However, ICICI Prudential Life grew a little slower at only 13%.

But is LIC lagging behind in the long race?

If we look at just the November figures, LIC’s performance looks good, but when we look at the entire performance so far this year, the picture looks a little different.

• Year to date (YTD):
  • The entire life insurance industry has grown at a pace of 7%.
  • Private insurance companies have grown at an average of 12%.
  • At the same time, LIC’s premium collection has decreased by 2%.
  • ICICI Prudential has suffered the biggest blow this year, whose premium has fallen by 6%.

These figures show that private companies have taken advantage of the removal of GST more rapidly than LIC and they are continuously increasing their market share. Overall, this decision of the government has come as a big relief for the insurance sector and a big gift for the customers.