All four PSU general insurers to pass full GST relief to policyholders
State-run insurers New India Assurance, United India Insurance, National Insurance and Oriental Insurance have announced that customers will receive the entire GST relief on eligible insurance products in their premium invoices. The companies said they will absorb the loss of input tax credits (ITC) on their own balance sheets rather than offset it through higher base premiums, ensuring a visible reduction in what customers pay.
The commitment applies to new policies and renewals issued after the GST rate change takes effect, with revised pricing to be reflected on policy schedules and renewal notices. Group clients have been told that existing terms will be reworked at renewal to pass through the tax benefit.
Management across the four insurers said the move supports affordability and aligns with the government’s objective of expanding insurance penetration. Policyholders have been advised to review revised premium break-ups and seek clarifications from their servicing branches if the GST relief is not reflected.
India’s non-life insurers grow 16.3% in August 2025
India’s non-life insurance industry logged 16.3% year-on-year premium growth in August 2025, sustaining the sector’s double-digit momentum. Executives cited steady demand in health and motor lines, with retail health renewals and new-to-insurance buyers contributing alongside improving auto sales. Commercial lines—fire, engineering and liability—also supported growth as infrastructure and SME activity picked up.
Private insurers continued to outpace state-owned peers on distribution reach and digital onboarding, while public sector carriers benefited from their extensive networks and group business. Insurers said the focus remains on pricing discipline and claims management, noting elevated medical inflation and weather-related losses through the monsoon.
Bancassurance, web aggregators and embedded partnerships helped widen access beyond metros, particularly in tier-2/3 markets. Companies indicated they will keep tightening underwriting, expand wellness-linked health covers, and push add-ons in motor to defend margins. With the festive season ahead, most expect strong sequential traction, while keeping a close watch on loss trends and reinsurance costs.
SBI General to pass full GST benefit to individual policyholders
SBI General Insurance said it will pass the entire GST rate reduction to individual customers, making select retail policies more affordable. The insurer confirmed that new and renewal policies issued after the rate change will reflect lower invoice totals, with the revised GST shown clearly on policy schedules.
To ensure a visible pass-through, SBI General said it will absorb the impact of lost input tax credits (ITC) on its own books rather than increase underlying base premiums. The move aligns with the government’s push to improve affordability and deepen insurance penetration following the GST Council’s rate cuts on insurance.
The company advised customers to review revised premium break-ups at purchase or renewal and contact servicing branches if the benefit is not reflected. Group and corporate customers will see adjustments at renewal, consistent with contractual terms. Industry observers said the decision could prompt broader market alignment as insurers recalibrate pricing and distributor payouts to deliver the tax relief.
Insurance + AI + trust: India’s next fintech leap
A new analysis argues that India’s fintech growth is shifting from payments to risk and protection, with insurance + AI + trust infrastructure set to drive the next wave. The piece says consent-based data sharing and digital public rails can unlock precision underwriting and real-time claims for underserved segments—gig workers, MSMEs and first-time buyers—via embedded cover at checkout and “use-based” products.
AI is expected to streamline onboarding, fraud detection and adjudication, while parametric and event-triggered policies could shorten payouts from weeks to minutes. But the note stresses that scale depends on trusted AI: explainability, model-risk governance, privacy-by-design, and audit trails that regulators can test. It urges common data standards across health, mobility and commerce rails, plus transparent metrics on claim turnaround, grievance outcomes and medical loss ratios.
Insurers, platforms and banks are advised to co-build products and publish outcome dashboards. With the right guardrails, the convergence of insurance, AI and trust tech could deepen penetration and strengthen household resilience.
Goa mandates Rs. 25 lakh insurance for aero sports operators
The Goa government has introduced the draft Goa Aero Sports Rules, 2025, requiring operators of paragliding, paramotoring, hot air balloon rides, and drone flights to provide Rs. 25 lakh accident insurance coverage for every pilot and passenger.
This move follows the tragic death of a tourist and her instructor during a paragliding crash earlier this year. The insurance must cover accidental death, disability, medical treatment, and Rs. 5 lakh for damaged equipment.
Operators must also register with the tourism department, ensure paramotor engines are DGCA-approved, and obtain annual safety certificates. Flights will be allowed only during daylight, and a technical panel will regulate pilots and flying zones.
Violations could result in penalties of up to Rs. 2 lakh and arrest. The government aims to increase safety standards in adventure sports while ensuring accountability from service providers.
Govt doubles registration renewal fee for vehicles over 20 years
To discourage prolonged use of ageing vehicles, the Ministry of Road Transport & Highways has doubled the registration renewal fees for vehicles older than 20 years.
For light motor vehicles, the fee has been raised from Rs. 5,000 to Rs. 10,000. Motorcycles will now pay Rs. 2,000 instead of Rs. 1,000. Three-wheelers and quadricycles face a hike from Rs. 3,500 to Rs. 5,000.
Imported vehicles face even steeper costs: Rs. 20,000 for two- or three-wheelers and Rs. 80,000 for those with four or more wheels. The rule was finalised on August 21.
The move supports the government’s end-of-life vehicle policy, though the Supreme Court recently directed authorities not to take coercive action against owners of old vehicles in Delhi-NCR. The court emphasised assessing usage, not just age.
This policy aims to reduce environmental impact while encouraging scrapping of older, more polluting vehicles and promoting new registrations.
SBI General rolls out ‘Timeless Tale of Shakti’ festive campaign
SBI General Insurance has launched ‘Timeless Tale of Shakti’, a festive-season brand campaign celebrating women’s resilience and everyday courage. The initiative centres on a short brand film that contrasts mythological symbols of Shakti with real-life moments of determination—at home, work, and on the road—linking the theme of inner strength to the role of insurance in safeguarding aspirations.
The campaign will run through the festive period across digital platforms and select media placements, supported by regional adaptations and bite-size edits for social. Engagement elements include collaborations with creators and community stories that spotlight unsung “Shakti” figures.
According to the company, the objective is to build salience for protection during high-spend months, nudge families toward timely cover, and reinforce SBI General’s positioning as a dependable partner in life’s turning points. The insurer said the film is part of an ongoing effort to make insurance more relatable by anchoring it in everyday experiences and values.
