Niva Bupa share price hits record high on reports of lower GST on life and health insurance premiums

On the National Stock Exchange, the stock rose as much as 15.1% to ₹94.37 apiece, which is its all-time high level since listing last month. At 11:16 am, it was trading at 92.35 a unit, reflecting a gain of 12.72%.

Cost of insurance premiums to come down if GST Council decides to reduce taxes: FM

On Monday, Finance Minister Nirmala Sitharaman said that if the GST Councils recommend a deduction in the GST rate on life and health insurance policies, policyholders' insurance costs will come down.

In a written reply in the lower House of Parliament—Lok Sabha—she said that the GST Council had recommended constituting a Group of Ministers (GoM) to look into GST on insurance premiums in its September 9 meeting.

"...The matter of review of GST rates on life and health insurance is pending before the GoM," she said, adding, "If a recommendation for a reduction in GST rate is made by the GST Council, the cost of insurance to the policyholder is expected to come down on account of reduction in GST."

Responding to a question about how the government will ensure that insurance firms pass on the benefits of GST reduction to policyholders, Sitharaman said competitive pricing will reduce insurance costs.

Presently, an 18% GST is imposed on premiums paid for health and life insurance policies.