Health, motor insurance policy sales jump on GST exemption, festival cheer

The GST exemption on insurance and festive demand have driven strong growth in health, motor segments, with ICICI Lombard, SBI General, Star Health reporting sharp upticks in sales, premium collection

The abolition of the goods and services tax (GST) on insurance products, coupled with the festival season, has lifted sales of health and motor insurance policies in recent months, insurers said.

 

While general insurers expect the impact of the withdrawal of input tax credit (ITC) to be minimal and are exploring ways to mitigate it, health insurance companies are passing on the cost to distributors.

 

ICICI Lombard General Insurance Company, a private-sector insurer with a sizeable motor and health portfolio, reported sales growth in both segments. Star Health and Allied Insurance Co, the largest standalone health insurer, saw a 50