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

Insurance shares had been in heavy demand on Thursday (September 4, 2025), with Star Health surging over 9%, as life insurance coverage and medical health insurance premia would come down as such merchandise are actually exempt from items and providers tax (GST).

Announcing the result of 56th GST Council assembly, Finance Minister Nirmala Sitharaman on Wednesday (September 3, 2025) stated all particular person life insurance coverage insurance policies, whether or not time period life, ULIP or endowment insurance policies and subsequent reinsurance are exempt from GST.

Shares of Star Health and Allied Insurance Company skyrocketed 9.35%, Niva Bupa Health Insurance Company zoomed 9%, ICICI Prudential Life Insurance Company jumped 5.70%, ICICI Lombard General Insurance Company rallied 5%, Life Insurance Corporation of India climbed 5%, HDFC Life Insurance Company went up 4.90% and SBI Life Insurance Company surged 4.88% on the BSE.

“While the direct beneficiaries embrace client, auto, cement, healthcare and insurance coverage sectors, the second order beneficiaries by way of development can be retail banks & NBFCs,” Rahul Singh, CIO-Equities, Tata Asset Management, stated.

All particular person medical health insurance insurance policies, together with household floater insurance policies and insurance policies for senior residents and reinsurance thereof may even be exempt from GST, she stated.

Since its inception in July 2017, GST on the charge of 18% is levied on premium paid in the direction of medical health insurance and life insurance coverage.

“We will be sure that corporations go on GST charge discount and make insurance coverage inexpensive for the widespread man and enhance the insurance coverage protection within the nation,” she stated.

She additional stated the brand new charges can be efficient from September 22, the primary day of Navratri.

“Some of the important thing sectors that stand to learn from this are insurance coverage, FMCG, cars, agriculture tools, cement, client durables, attire, footwear, QSR, and retail,” Pranav Haridasan, MD and CEO, Axis Securities, stated.