One decision of the government and the picture of the entire industry changed! The impact of removal of GST on life and health insurance products is now clearly visible. There has been a huge jump in the premium collection of insurance companies in the month of November, which shows that after the policies becoming cheaper, people are now buying insurance extensively. Last month i.e. in November, a strong increase of 27% was recorded in the retail premium collection of life insurance companies on an annual basis. This growth was seen almost equally in both the country’s largest insurance company LIC and private companies. Bumper benefit of removal of GST. Let us tell you that the government had reduced the 18% GST on life and health insurance premium to zero from September 22, 2025. This simply means that now your policy has become cheaper by about 18%. October was the first full month after this decision, and its impact was seen even more strongly in November. The performance of companies like SBI Life remained excellent for the second consecutive month. Private companies created a stir, left LIC behind. While LIC’s premium collection increased by 27% in the month of November, many private companies picked up the pace even faster. Bajaj Allianz Life registered a stormy increase of 39%. The performance of SBI Life was also explosive and it left LIC far behind with a growth of 33%. Tata AIA Life and Aditya Birla Sun Life, both registered a strong growth of 28%. Max Life 23% and HDFC Life grew at a pace of 20%. However, ICICI Prudential Life was able to grow only 13% at a slightly slower pace. But is LIC lagging behind in the long race? If we look only at the November figures, LIC’s performance looks good, but when we look at the entire performance so far this year, the picture looks a little different. Year to Date (YTD): Whole Life Insurance The industry has grown at a pace of 7%. Private insurance companies have grown at an average of 12%. At the same time, LIC’s premium collection has decreased by 2%. The biggest blow this year has been to ICICI Prudential, whose premium has fallen by 6%. These figures show that private companies have taken advantage of the removal of GST more rapidly than LIC and they are continuously increasing their share in the market. Overall, this decision of the government has come as a big relief for the insurance sector and a big gift for the customers.
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