Launch campaigns on GST reforms' benefits, DFS secy tells insurers

DFS Secretary M Nagaraju urged insurers to launch outreach campaigns to publicise GST exemption on life and health policies and ensure benefits reach policyholders

The Department of Financial Services (DFS) Secretary, M Nagaraju, on Monday directed insurance companies to proactively undertake outreach campaigns to publicise the recent reforms and highlight their positive impact in making insurance more affordable and accessible.

 

“The measure is expected to make insurance more accessible and cost-effective, thereby strengthening financial security and enhancing insurance penetration across the country,” the finance ministry said in a statement.

 

Nagaraju chaired a meeting in New Delhi with senior officials of the DFS, the Insurance Regulatory and Development Authority of India (IRDAI), chairpersons and managing directors of public sector insurers, chief executives of leading private sector life and non-life insurers, and officials from the Life Insurance Council and the General Insurance Council.

 

The meeting followed the decision of the Goods and Services Tax (GST) Council at its 56th meeting on September 3, 2025, to exempt GST on all individual life and health insurance policies. The Secretary underlined the importance of ensuring that the benefits of this exemption are fully passed on to both existing and prospective policyholders. The reform is expected to make insurance more affordable, strengthen financial security, and boost penetration across the country.

 

Those present at the meeting included Swaminathan S Iyer, whole-time member (life), IRDAI; R Doraiswamy, CEO and MD, Life Insurance Corporation of India; Girija Subramanian, chairman and managing director, New India Assurance Company; Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company; senior representatives from ICICI Lombard and Aditya Birla Sun Life Insurance; and other major insurers.