Niva Bupa may take hit of 50-60 bps on combined ratio after GST, ITC change

Niva Bupa expects a modest 50-60 basis point hit from GST-related ITC loss but aims to offset it through higher policy sales, revised distributor commissions, and cost efficiencies

Standalone health insurer Niva Bupa Health Insurance expects 50-60 basis points (bps) impact on combined ratio due to the removal of input tax credit (ITC) post goods & services tax (GST) rate revisions, Vishwanath Mahendra, chief financial officer (CFO), said.

 

However, revision in distributor commissions, increase in volume of business and lower GST rates for medicines should help mitigate the impact.

 

The combined ratio of the company, according to the International Financial Reporting Standards (IFRS) accounting method was 103 per cent at the end of H1 FY26 and is expected to improve further in H2.

 

In early September, the GST