With the Central Government’s recent decision to remove GST on health insurance policies, there has been a remarkable surge in public interest toward health insurance. According to a new report by online insurance marketplace PolicyBazaar, new health insurance policy purchases have increased by 38%. The removal of GST not only provided financial relief to common people but also increased awareness about the importance of health coverage.

The report reveals that not just the number of buyers but the average insurance coverage amount has also grown significantly — from ₹13 lakh earlier to ₹18 lakh now. Nearly 45% of new policyholders are opting for coverage between ₹15–₹25 lakh, while 24% prefer ₹10–₹15 lakh coverage and 18% choose below ₹10 lakh.

Even existing policyholders are taking advantage of the GST exemption by enhancing their policies and adding new benefits. Among senior citizens aged above 61, interest in high-coverage policies has risen by 11.5%.

Interestingly, the demand for health insurance is not limited to metros — smaller towns are also showing increased awareness and participation. The PolicyBazaar report concludes that the GST exemption has played a key role in boosting the overall health insurance market across India.