Page 7 - The Insurance Times October 2025

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access beyond metros, particularly in
All four PSU general insurers to pass full GST relief tier-2/3 markets. Companies indicated
to policyholders they will keep tightening underwriting,

State-run insurers New India Assurance, United India Insurance, National expand wellness-linked health covers,
Insurance and Oriental Insurance have announced that customers will re- and push add-ons in motor to defend
ceive the entire GST relief on eligible insurance products in their premium margins. With the festive season
invoices. The companies said they will absorb the loss of input tax credits ahead, most expect strong sequential
(ITC) on their own balance sheets rather than offset it through higher base traction, while keeping a close watch
premiums, ensuring a visible reduction in what customers pay. on loss trends and reinsurance costs.
The commitment applies to new policies and renewals issued after the GST SBI General to pass full
rate change takes effect, with revised pricing to be reflected on policy sched-
ules and renewal notices. Group clients have been told that existing terms GST benefit to individual
will be reworked at renewal to pass through the tax benefit. policyholders
Management across the four insurers said the move supports affordability SBI General Insurance said it will pass
and aligns with the government's objective of expanding insurance penetra- the entire GST rate reduction to indi-
tion. Policyholders have been advised to review revised premium break-ups vidual customers, making select retail
and seek clarifications from their servicing branches if the GST relief is not policies more affordable. The insurer
reflected. confirmed that new and renewal policies
issued after the rate change will reflect
lower invoice totals, with the revised GST
India's non-life insurers as infrastructure and SME activity shown clearly on policy schedules.
picked up.
grow 16.3% in August To ensure a visible pass-through, SBI
Private insurers continued to outpace General said it will absorb the impact
2025 state-owned peers on distribution of lost input tax credits (ITC) on its own
India's non-life insurance industry reach and digital onboarding, while books rather than increase underlying
logged 16.3% year-on-year premium public sector carriers benefited from base premiums. The move aligns with
growth in August 2025, sustaining the their extensive networks and group the government's push to improve
sector's double-digit momentum. Ex- business. Insurers said the focus re- affordability and deepen insurance
ecutives cited steady demand in health mains on pricing discipline and claims penetration following the GST Council's
and motor lines, with retail health re- management, noting elevated medical rate cuts on insurance.
newals and new-to-insurance buyers inflation and weather-related losses The company advised customers to
contributing alongside improving auto through the monsoon. review revised premium break-ups at
sales. Commercial lines-fire, engineer- Bancassurance, web aggregators and purchase or renewal and contact ser-
ing and liability-also supported growth embedded partnerships helped widen vicing branches if the benefit is not

The Insurance Times October 2025 7