Life Insurance Corporation (LIC) confirmed that the government’s latest Goods and Services Tax (GST) exemption will fully benefit policyholders.
R. Doraiswamy, LIC’s CEO and Managing Director, said the company has passed the 100 % tax break on life‑insurance premiums to its customers. The move was announced after the insurer released its Q2 earnings.
The GST change comes as part of India’s GST 2.0 reforms. Starting 22 September 2025, the federal government will exempt all individual life‑ and health‑insurance premiums from tax. Before this, insurers paid up to 18 % GST on premiums.
“LIC has made sure that the new GST savings reach every customer,” Doraiswamy told reporters. “Lower premiums mean more people can afford life insurance, which supports India’s goal of ‘Insurance for All by 2047.’”
Business performance
- New business grew 17.6 % in the second quarter, up from 16.2 % last year.
- LIC holds a market share of 59.41 % on first‑year premium income.
- Net profit rose 32 % to ₹10,053.39 crore in Q2, compared with ₹7,620.86 crore in the same period last year.
- Net premium income for July‑September increased 5.5 % year over year, reaching ₹1.26 lakh crore.
- The insurer’s solvency ratio climbed to 2.13 % from 1.98 % a year earlier.
The company noted that first‑half growth of its annual premium equivalent (APE) was modest because of a last‑year “master circular” and the need to overhaul products for compliance deadlines. Doraiswamy said the new business momentum will continue in the second half of the year.
Focus on key segments
LIC is building its non‑participating (non‑par) policy line but isn’t setting a strict market‑share target. “We’re aiming for steady momentum,” Doraiswamy said, pointing to a 36.31 % share in this segment.
Digital push
The insurer continues to roll out digital tools. Internal testing and pilot projects are underway, with a new platform version expected to launch soon. LIC says it will keep updating the platform as it grows.
Bottom line
With the new GST exemption, life‑insurance premiums become cheaper for consumers. LIC’s leadership team believes this will boost sales, increase market penetration, and help India move closer to universal coverage by 2047.
Source: ianslive
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