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Star Health Sees 11% Retail Policy Surge After GST Exemption
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News18•27-09-2026, 18:45
Star Health Sees 11% Retail Policy Surge After GST Exemption
- •Star Health's retail policy base increased by 11% and average cover on fresh policies rose after GST exemption on individual health insurance premiums.
- •The average sum insured on fresh retail health indemnity policies grew by approximately Rs 1.4 lakh to Rs 13.7 lakh between October 2025 and August 2026.
- •GST on individual health insurance premiums was reduced from 18% to zero on September 22, 2025, to make insurance more affordable and expand coverage.
- •Star Health reported accelerated growth in its retail portfolio and increased penetration in tier II, III, and IV markets, along with more new-to-insurance customers.
- •Consumers aged 26-50 accounted for over 80% of net policy additions during the period, indicating wider participation across age groups and geographies.
Key Questions Answered
Following the removal of GST on individual health insurance premiums, Star Health reported an 11 per cent rise in its retail policy base during the 11 months since the tax was scrapped.
The average sum insured on fresh retail health indemnity policies rose by about Rs 1.4 lakh to reach Rs 13.7 lakh between October 2025 and August 2026 compared to the previous year.
The GST on individual health insurance premiums was brought down to zero from 18 per cent effective September 22, 2025, as part of the government's indirect tax rationalisation measures.
