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 drop...