The IRDAI collected prevailing premium rates as of September 3, 2025, and has been regularly monitoring premiums for new policies as well as renewals to ensure that insured individuals receive the intended benefit, Union Finance Ministry, Minister of State (MoS) Pankaj Chaudhary informed the Lok Sabha
New Delhi: Union Finance Ministry, Minister of State (MoS) Pankaj Chaudhary informed the Lok Sabha that according to the IRDAI, in January 2026, all general health and life insurance companies confirmed to the insurance regulator IRDAI that they had not revised premiums upward after the Union government’s GST relief announcement and that the full benefit had been passed on to policyholders.
The IRDAI collected prevailing premium rates as of September 3, 2025, and has been regularly monitoring premiums for new policies as well as renewals to ensure that insured individuals receive the intended benefit, he said.
He was reply to Rashtriya Loktantrik Party (RLP) President and Nagaur(in Rajasthan) Lok Sabha MP, Hanuman Beniwal’s query in the Lok Sabha regarding GST reforms on personal life insurance and health insurance policies.
Beniwal said that despite the Union government reducing GST to zero on these insurance products, insurance companies in Rajasthan and several other states have increased base premiums by 8 to 12 per cent.
Beniwal asked the Union government on what concrete action plan it has to curb this arbitrary practice by insurance companies.
Replying on behalf of the Union Finance Ministry, Chaudhary said that, as per the IRDAI, a one-day, in-person meeting with insurance companies was held on September 17, 2025, to ensure full transmission of GST relief.
Insurance companies were strongly instructed to pass on the complete benefit to policyholders, the MoS added.
The MoS also clarified that for life insurance policies, premiums and benefits once fixed under a policy cannot be altered during the policy tenure.
Nagaur MP Beniwal said that the removal of GST on health insurance should have directly benefited the common people, not insurance companies.
“However, immediately after GST removal, insurance companies increased base premiums by 8 to 12 per cent in Rajasthan and other states, which is a clear betrayal of public trust and a misuse of the Union government’s policy decision,” he said.
He emphasised that health insurance is not a luxury but a necessity, as illness already weakens individuals financially and mentally.
The profit-driven policies of insurance companies are further burdening the common man, the RLP President said.
The Nagaur MP added that while GST relief was meant for consumers, insurance companies found ways to neutralise its impact, which is against public interest.
He also asserted that the benefits of government reforms are being limited only to corporate profits, a reality the Union government is unwilling to acknowledge.
He urged that IRDAI must exercise strict oversight and take firm action against the arbitrary practices of insurance companies.