GST cut eases premiums but deeper issues keep Indian health insurance out of reach
Industry experts say removing GST lowered health-insurance premiums, yet high medical costs, underinsurance and trust gaps still limit coverage in India.
During a discussion titled “GST Rationalisation Done. What Next for Affordable Health Insurance?” at one outlet BFSI Insight Summit 2026, Amit Roy (PwC), G Srinivasan (Galaxy Health Insurance) and S Prakash (General Insurance Council) examined the effects of abolishing the 18% GST on health-insurance premiums. They agreed the tax relief has made policies seem more affordable and prompted some upgrades, but its influence has plateaued after an initial boost.
Ongoing challenges include soaring medical costs, a large segment of the population remaining uninsured or underinsured, and a pervasive trust deficit regarding policy terms and claim settlements. The speakers urged clearer, jargon-free communication, stronger coordination between insurers and hospitals for cashless authorisations, and sustained awareness campaigns, especially targeting younger buyers. They also advocated for a dedicated health regulator and a dispute-resolution forum to rebuild confidence and widen coverage.
Why it matters
Affordability and trust are key to expanding health insurance, affecting millions of Indian households.
In this story
