Despite a 6% decline in premium collections in the first half, the Indian insurance sector is gearing up for robust growth following the government’s GST exemption on life and healthcare policies. | Photo credit: iStockphoto
Despite the sharp decline in premium collections in the first half of this fiscal, the insurance sector is poised for robust growth, driven by pent-up demand following the government’s GST waiver.
According to recent data from insurance regulator IRDA, premium collection for the first year of individual regular premium policies fell by 6 percent in the first half of this fiscal year ending September.
Policy sales are recovering sharply after the GST exemption
Industry insiders believe that expectations of GST reforms are deterring customers from purchasing a new insurance policy.
However, sales of term and health insurance policies (TIPs and HIPs) have surged after the GST exemption came into effect on September 22.
Start early: experts recommend HIPs, TIPs from age 30
Rakesh Bhandari, Director, Nirmal Bang Securities, emphasized that in today’s fast-paced and stressful world, individuals should strive to achieve their financial goals by planning from an early age, ideally from the age of 30, with a focus on SIPs, HIPs and TIPs.
People can get long-term insurance at a lower premium in their 30s, and the general rule of thumb is 10 to 15 times annual income, adjusted for loans and goals, he added.
Medical costs are rising rapidly, with the government CPI showing healthcare inflation at levels of 4 to 5 percent annually.
Bhandari said that besides HIP and TIP, you should also opt for SIP to build wealth for long-term goals with automated SIP and premium payments.
The benchmark Nifty has delivered double-digit annualized returns over long periods, he added.
Published on October 15, 2025
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