The Central government’s move to remove goods and service tax (GST) on insurance premiums under GST reforms has sparked a sharp demand in high-value health plans, according to Policybazaar data. Post-GST relaxation, almost half of the customers are now choosing high coverage health plans in the range of Rs 15-25 lakh, followed by 24 per cent in the Rs 10-15 lakh range, while only 18 per cent opt for cover below Rs 10 lakh.

Policybazaar data reveals that the average health cover has grown from Rs 13 lakh to Rs 18 lakh post-GST waiver. Add-on features like Day-1 pre-existing disease (PED) and critical illness coverage have also seen a sharp rise, with 25% and 20% growth respectively.

Effective from September 22, all individual health insurance, along with reinsurance thereof; and all indiv

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