Life Insurance Sector Seeks Clarity on Proposed GST Cuts

Quick Summary

• The life insurance industry is seeking clarity on proposed GST rate cuts for individual policies, according to Venkatachalam Iyer, Co-Chairperson of the insurance Awareness Committee (IAC-Life), under Life Insurance Council.
• India ranks 10th globally in the life insurance market with a penetration rate of 3.2%.
• The Sabse Pehle Life Insurance 2.0 campaign aims to shift from awareness to action – promoting life insurance as a trusted financial essential for every Indian household.

Indian Opinion Analysis

The push for greater clarity on GST rate cuts reflects an ongoing effort to make life insurance more accessible and appealing through cost reductions. With India’s relatively low penetration rate of 3.2%, strengthening financial literacy through initiatives like Sabse pehle Life Insurance 2.0 could have vital economic implications, increasing security for households while supporting broader growth in the financial sector. As India ranks 10th globally in this market, concerted efforts may also help boost its standing as an emerging leader in global financial services.

Read more: August 22, 2025