The government’s September 22 decision to remove GST on retail health insurance premiums has not just lowered costs—it has changed how Indians evaluate coverage. A clear shift is visible from focusing on premium amounts to seeking higher protection levels.

BulletsIn:

* Govt removes GST on retail health insurance premiums (0% rate)

* Move reduces policy cost; boosts affordability

* Behaviour shift: focus moving from premium amount → protection level

* Sharp rise in high-value plan demand post-GST waiver

* Policybazaar reports 38% increase in higher-sum-insured purchases

* ₹15–25 lakh covers now dominate new policy sales

* Average cover size jumped from ₹13 lakh → ₹18 lakh

* Seen as response to medical inflation and rising health costs

* Indicates stronger financial preparedness mindset among consumers

* Reform likely to reshape long-term health insurance market trends