Insurance stocks climb as GST Council scraps 18% levy on policies

Insurance shares gained on Thursday after the GST Council exempted individual life and health insurance policies from the 18% Goods and Services Tax (GST).

ICICI Lombard General Insurance jumped 2.97%, Star Health and Allied Insurance rose 2.36%, General Insurance Corporation of India gained 2.29%, Life Insurance Corporation of India added 2%, New India Assurance was up 1.62%, ICICI Prudential Life Insurance rose 1.54%, HDFC Life Insurance climbed 1.51%, SBI Life Insurance gained 1.34%, and Go Digit General Insurance advanced 1.33%.

The move also covers reinsurance of such products. The exemption applies to all life insurance products including term life, Unit Linked Insurance Plans (ULIPs), and endowment policies, as well as health insurance plans such as family floater and senior citizen policies.

The removal of GST could boost affordability and spur higher policy adoption, improving long-term growth prospects for insurers.

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