**Executive Summary**
This document is the answer provided by the Minister of State in the Ministry of Finance to Unstarred Question No. 1442 regarding the rise in insurance premiums despite GST reforms, answered on February 9, 2026. The response outlines measures taken by the IRDAI to ensure insurance companies pass on the benefits of GST relief to policyholders and confirms that General and Health Insurance companies have not revised premiums following the Government's announcement of GST relief. IRDAI held an interaction with insurance companies on September 17, 2025.
**Key Points / Main Content**
* **IRDAI Measures**
* IRDAI held an in-person interaction with insurance companies on September 17, 2025, to ensure rate reduction is fully transmitted to policyholders.
* IRDAI collected premium rates as of September 3, 2025, and is regularly monitoring premiums.
* **Confirmation from Insurance Companies**
* General and Health Insurance companies confirmed in January 2026 that they have not revised premiums following GST relief.
* Insurance companies confirmed that GST relief granted by the Government has been fully passed on to policyholders.
* **Life Insurance Policies**
* For Life Insurance policies, the premium and benefits available under the plan cannot be altered during the term of the policy.
**Impact Analysis**
* **Insurance Policyholders**
**Impact**
* Policyholders should receive the full benefits of GST relief on insurance premiums.
**Action Required**
* Policyholders should monitor their insurance premiums to ensure they reflect the GST relief provided by the government.
Key Entities Referenced
Goods and Services Tax (GST): Tax levied on goods and services, and whose reforms are related to insurance premium rates.
Insurance Regulatory and Development Authority of India (IRDAI): The primary regulator for the insurance sector in India, responsible for ensuring that benefits are passed on to policyholders.
Rajasthan: One of the states where insurance companies have reportedly raised the base premium despite GST reforms.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION No. 1442
ANSWERED ON MONDAY, 9 FEBRUARY, 2026/MAGHA 20, 1947 (SAKA)
Rise in Insurance Premium
†1442. SHRI HANUMAN BENIWAL:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government is aware that despite the GST on personal life insurance
and health insurance being reduced to zero under the GST reforms, insurance
companies in several States including Rajasthan have raised the base premium from
8 to 12 percent;
(b) if so, the details of the reasons therefor;
(c) whether the Government proposes to take any concrete steps to curb this
arbitrariness of the insurance companies so that the benefits of GST reforms is
availed by the new policy holders; and
(d) if so, the details thereof along with the time-line for implementing the same and if
not, the reasons therefor?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d): Insurance Regulatory and Development Authority of India (IRDAI) has
informed that for ensuring full transmission of the rate reduction, a day long in-person
interaction was held with the insurance companies on 17th September, 2025. The
need to pass on the full benefits to the policyholders in letter and spirit was impressed
on them. Further, IRDAI has collected the premium rates prevailing as on 3rd
September, 2025 and has been regularly monitoring the premiums being charged for
new policies as well as for renewal of policies to ensure benefits are passed on to
insured individuals.
In this regard, IRDAI has informed that a confirmation has been received from all
General and Health Insurance companies in January, 2026 that they have not revised
premiums following the Government's announcement of GST relief. They have further
confirmed that the GST relief granted by the Government has been fully passed on to
the policyholders.
IRDAI has also informed that for Life Insurance policies, the premium and benefits
available under the plan cannot be altered during the term of the policy.
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