GST exemption on insurance a game changer, says PB Fintech’s Yashish Dahiya

The GST Council’s decision to exempt individual life and health insurance from the 18% tax is a landmark reform that could boost awareness and adoption of these products, said Yashish Dahiya, Co-founder and CEO of PB Fintech, which runs Policybazaar.

Calling it a “very favourable move,” Dahiya said the change is more about messaging than pricing. “Health and term insurance are not like savings products where a 1–2% change in price matters. People either buy them or they don’t, depending on how they perceive the risks. By removing GST, the government is sending a strong signal that these are essential products every family should consider,” he told ET Now.

Government’s stamp of approval

Dahiya explained that Policybazaar spends nearly 85% of its advertising budget trying to convince consumers about the importance of health and term insurance. “Now the government itself is amplifying that message by making GST zero. This is the biggest validation we could ask for,” he said.

He added that despite being critical, these categories remain underpenetrated in India. “For any middle-class family, the first two insurance products to consider are health and term. Yet very few people have them. The government’s move gives a much-needed push,” he said.

Impact on PB Fintech’s business

On the financial side, Dahiya said the GST exemption will not dramatically alter Policybazaar’s profitability but will help expand the overall market. “Our profit is about 1% of the premium we sell. If we do Rs 35,000 crore in premiums, our profit is around Rs 350 crore. Whether that 1% is there or not doesn’t change much for consumers. What matters is the role Policybazaar plays in growing awareness and adoption,” he explained.

He stressed that the company’s long-term growth will come from higher insurance penetration, which the GST cut directly supports. “This reform is not about saving 18% tax—it is about creating trust and recognition for essential products that protect families from financial shocks,” Dahiya said.

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