In a country where medical costs continue to inflate, access to affordable health insurance is more vital than ever. The recent GST reform ushers in a welcome relief—effective from September 22, 2025, individual health insurance premiums are now completely exempt from the previous 18% Goods and Services Tax (GST). That means less tax burden on your pocket and more focus on protection. For policyholders, this is a turning point - one that makes healthcare coverage more affordable and accessible. Let’s understand this further.

What Does This Change Mean for You?

Think of it like this: earlier, every rupee you paid in premium carried an extra 18% tax on top. Now, that extra cost is gone.
For Example:

• Earlier
  If your Base premium was ₹20,000, the total payment made with GST (18%) was ₹23,600.

• Now
  Your Base premium will only be ₹20,000 only, no additional GST (18%). That’s ₹3,600 saved instantly, without reducing your cover. The bigger your premium, the bigger the saving.

   

  This reform ensures that the money you set aside for your health security will now godirectly toward protecting your health not taxes.

Why This Reform is a Win for You?

• Immediate Cost Savings
  With no GST added, your premiums are lighter on the pocket. Whether you’re buying a new policy or renewing an existing one, the difference will be noticeable straight away.

• Health Insurance Becomes More Accessible
  Affordability is often a barrier for many families when considering health insurance. Removing GST lowers the entry cost, encouraging more people, especially first-time buyers to safeguard themselves with a health plan.

• Better Value for Families and Seniors
  Family floaters and senior citizen plans usually have premiums for a larger group and elderly which is on the higher side. The GST exemption means larger savings on these policies, making long-term healthcare protection more sustainable.

• Opportunity to Add Optional Covers
  Lower premium will give you an opportunity to strengthen your health insurance plan by adding the required add-ons such as non-medical expenses, cashless OPD, maternity benefits, and more as per your medical needs.

• Encourages Wider Coverage
  With lower premiums, families can consider upgrading to higher sum insured options, ensuring they are prepared for medical emergencies without compromising quality of healthcare.
  The great part of this change is that these savings aren’t one-time - they recur every year, which means more money stays with you over the life of your policy.

But With This Change, Should You Delay Paying Your Health Insurance Premium?

With the GST exemption on health insurance premiums starting September 22, 2025, many policyholders are curious whether it makes sense to hold off on payments until then. Here’s the simple answer to it:

• If your renewal is scheduled before September 22, 2025, waiting won’t help. Your plan will continue as is, with the same benefits and GST still applied.
• The zero GST benefit is available only for renewals that fall on or after September 22, 2025, or for fresh policies purchased from that date onward.

But What About Premiums Refund?

If you’ve already paid your premium in advance (including GST), you won’t receive any refund. That’s because GST is charged at the time of payment, so earlier transactions remain unchanged.

So, When Will You Actually Save?

You’ll see the real impact of GST-free premiums starting from your renewal cycle after September 22, 2025.

For instance:

• If you bought a three-year health policy in 2024 and it renews in 2027, your renewal will automatically be charged without GST—almost 18% cheaper than what it would have been.
• If your renewal comes up in October 2025, you’ll benefit right away, since the new rule will already be in effect.

In conclusion, this change will benefit all, for some it will start instantly, for others in some time. But don’t delay paying your premiums to wait for GST exemption. The most important thing is to keep your health insurance active without any gap in coverage. When your renewal date comes the savings will reflect automatically giving you more protection at a lower cost. Take advantage of this opportunity and explore ManipalCigna’s plans, upgrade your protection, and enjoy the benefits of GST-free health insurance—where every rupee goes toward securing your health.

Disclaimer: *0% GST is Applicable on Individual Health Insurance Policy including Family Floater
T&C Apply |IRDAI Reg No:151| ARN: ADV/2215/Sep/2024-25