Policybazaar has reported a sharp rise in health and term insurance purchases after the government removed Goods and Services Tax (GST) on pure protection policies.

The GST Council had recently reduced the tax rate on term insurance and standard health insurance plans from 18% (12% for certain health products) to 0%. The exemption does not apply to investment-linked products such as ULIPs or endowment policies, which continue to be taxed at existing rates.

Following the implementation of the zero-GST rule, Policybazaar said demand for term insurance rose 2.5 times compared to its pre-announcement average (till September 2025), while health insurance saw a 2.2x increase.

The company added that the trend has stabilised at 1.8x for term insurance and 1.7x for health insurance in the subseq

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