Insurance Stocks Slip as GST Decision Faces Another Delay

Shares of life insurance players took a nosedive as the GST Council pumped the brakes on a potential rate cut for insurance premiums.  New India Assurance slid 6.8% to ₹199.60, and Star Health stumbled by 2.7%. The crux of the market unease? The council, under Finance Minister Nirmala Sitharaman’s watch, decided more time was needed to untangle the tax complexities. Initially, the GoM dangled a promising proposal in November—GST exemptions for term life insurance and reduced rates for health policies catering to senior citizens and those with coverage up to ₹5 lakh. But for now, the standard 18% GST remains on high-ticket health policies exceeding ₹5 lakh, leaving middle-class policyholders and insurers in a limbo. With affordability and accessibility on the line, the eventual outcome of these debates could reshape how millions approach insurance. But as it stands, the market isn’t impressed by the pause.

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