Insurance stocks in limelight; Star Health up over 9% as life, health insurance exempt from GST

On Thursday (September 4, 2025), insurance stocks were in heavy demand, Star Health increased by more than 9%, as Life Insurance and Health Insurance Premier will be reduced as such products are now exempted from Goods and Services Tax (GST).

Announcing the result of the 56th GST Council meeting, Finance Minister Nirmala Sitarman said on Wednesday (September 3, 2025) that all personal life insurance policy, whether life, ULIP or settlement policies and later rebuilding the rebuilding should be exempted from GST.

Star Health and Allied Insurance Company shares 9.35%, NIVA BUPA Health Insurance Company scored 9%, ICICI PRDENIL LIFE Insurance Company jumped 5.70%, ICICI Lombard General Insurance Company has 5%, ICICI Lombard General Insurance Company 5%, climbing over HDFC Life Insurance Company to 4.90%and SBI Life Insurance 4.88.

Rahul Singh, CIO-equities, Tata Asset Management said, “Direct beneficiaries include consumers, autos, cement, healthcare and insurance sector, the second order beneficiary in the context of development said the second order beneficiary retail bank & amp; NBFCS,” Rahul Singh, CIO-Equits, Tata Asset Management.

He said that all individual health insurance policies, including family floaters policies and policies for senior citizens, would also be exempted from GST.

Since its establishment in July 2017, GST is planted at the premium paid towards health insurance and life insurance at the rate of 18%.

“We will ensure that companies pass on GST rate reduction and make insurance cheap for the common man and increase insurance coverage in the country,” he said.

He said that the new rates will be effective from the first day of Navratri from September 22.

“Some of the major areas that stand to benefit from it are insurance, FMCG, automobile, agricultural equipment, cement, consumer durable, apparel, shoes, QSR and Retail,” Pranav Haridasana, MD and CEO, Axis Securities said.