GST Relief Drives Insurance Buying Frenzy: Record Traffic On Policybazaar During Navratri

Policybazaar, has recorded its highest-ever traffic for health and term insurance following the Government’s landmark 0% GST announcement. The current average demand surge from the pre-GST baseline (until Sep ’25) has surpassed even the spike last seen during the pandemic years.

This highlights the kind of immediate impact that the policy change has had on pure protection segments. While term insurance has recorded a historic 2.5x surge after no-GST rule implementation, health insurance has clocked a phenomenal 2.2x increase in demand. The spike thereafter has sustained momentum, with health insurance demand up 1.7x and term insurance up 1.8x on the platform.

Over the years, India’s insurance penetration has remained low compared to the global

coverage. The government’s monumental decision to bring down GST* to zero on term and health insurance will drive up adoption of these products which form the backbone of financial protection for families in India.

Typically, the insurance market comprises three kinds of consumer segments: the active buyers, the procrastinators, and the fence-sitters. For active planners, this is the best time to increase coverage. For procrastinators, the lowered cost is finally prompting overdue purchases. And for fence-sitters, the GST relief has served as a decisive push to move further down the buying funnel.

The timing of the announcement also plays a cultural role. Navratri, considered an auspicious time for new beginnings and investments, has further accelerated consumer action on these products. The festive season usually fuels financial decisions and big-ticket purchases, and this year, with the GST relief, the momentum is even stronger.