Skip to main content

0% GST makes health insurance a hot pick for bigger, long-term cover: Study

By

The government’s move to make retail health insurance GST-free has done more than just cut costs, it has changed the way Indians buy health cover. New data from Policybazaar shows a sharp rise in demand for bigger covers and comprehensive protection.

What’s changed after the 0 per cent GST exemption

  • The average sum insured has jumped 38 per cent, from Rs 13 lakh to Rs 18 lakh.
  • Nearly half of all new buyers (45 per cent) now opt for policies in the Rs 15–25 lakh range.
  • Only 18 per cent are sticking with smaller covers below Rs 10 lakh.
  • Millennials and mid-aged consumers are driving this shift, showing growing awareness of health and financial risks.

Seniors and smaller cities step up

The surge isn’t just among younger policyholders or metro buyers:

  • Older customers (61-75 years and above) have shown an 11.5 per cent rise in buying high-value covers
  • Tier-II cities are catching up, those choosing Rs 15-25 lakh plans rose from 44.1 per cent to 48.6 per cent
  • Meanwhile, small-cover plans dropped from 24.1 per cent to 16.8 per cent, showing people outside metros now want better protection against medical costs

Why people are upgrading

Rising hospital bills and post-pandemic health awareness are key triggers. Buyers are realising that a low-cover plan often falls short when faced with long hospital stays or critical illnesses. Locking in a higher sum insured while young and healthy is also helping them avoid exclusions later in life.

Add-ons and riders are gaining traction

Customers are also customising their policies for wider protection:

Day-1 pre-existing disease (PED) add-on: up from 16 per cent to 20 per cent.

Critical illness add-on: up nearly 20 per cent in just a month.

Riders on renewals: jumped by 50 per cent, as more buyers upgrade their old policies.

Multi-year plans: increasingly popular as consumers prefer long-term financial security.

 

The bigger picture

Siddharth Singhal, business head-health insurance, Policybazaar.com, said the 0 per cent GST “has been a catalyst for shifting from minimal to maximum protection.”

 

-Business Standard 01st November,2025

Comments

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Offer’s for all of you

By
Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533  drop a mail to sales@webecreator.com
Post a Comment
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more