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As of September 22, 2025, travel insurance has become more affordable for Indian citizens visiting abroad. With GST removed, you can now save 18% on your premium, just in time for the festive season.
The winter months, i.e. October, November, and December, are the most preferred time for international travel among Indian travellers.
Simply put, if you purchase a travel insurance policy on or after September 22, 2025, no GST will be applied to the base premium, which was previously taxed at 18%.
GST on Travel Insurance in India: What Changed in 2025?
In 2025, the Indian government made a significant move by declaring 0% GST on insurance, effective from September 22, 2025. This means travellers no longer pay extra tax on their insurance premiums. If you are an individual who enjoys exploring different countries or planning family vacations, then a GST rate on insurance premiums can significantly reduce your travel budget.
For example:
Solo Traveller- A Work Trip to Singapore
Ravi, a 34-year-old marketing executive from Delhi, is heading to Singapore for a week-long business trip. He buys a travel insurance policy to cover medical emergencies, trip cancellations, and baggage loss. Earlier, he would have paid ₹1,180 for a ₹1,000 premium due to 18% GST. But now, with 0% GST, he pays only ₹1,000, saving ₹180.
For frequent solo travellers like Ravi, these savings add up quickly, making international travel more cost-efficient without compromising safety.
Family Traveller- A Family Trip to Europe
The Mehra family, a couple with two kids, plans a two-week vacation across Europe. They purchase a comprehensive family travel insurance policy with a premium of ₹5,000. Previously, they would have paid ₹5,900 after 18% GST. Thanks to the GST exemption, they now save ₹900.
For families, this means lower travel costs and complete protection during their international holiday.
Student Traveller- Study Abroad in Canada
Ananya, a 20-year-old student from Bengaluru, is moving to Canada for a two-year college program. She opts for a student travel insurance policy covering health, travel delays, and personal liability. Her policy premium is ₹12,000, which was earlier ₹14,160 with GST. With 0% GST, she now saves ₹2,160, an amount that can go toward textbooks or initial living expenses. For students on tight budgets, this tax relief offers meaningful financial support while ensuring global coverage.
GST on Travel Insurance India 2025: Before & After GST Glimpse
Still unsure how 0% GST Travel insurance in India really changes the game? Here’s a quick snapshot of how travel insurance feels before vs after this significant update.
Spoiler: your wallet’s going to love it.
| Aspect | Before GST Removal (Up to Sept 21, 2025) | After GST Removal (From Sept 22, 2025) |
|---|---|---|
| GST Rate on Travel Insurance | 18% | 0% |
| Base Premium Example | ₹5,000 | ₹5,000 |
| GST Amount on ₹1000 Premium | ₹900 | 0 |
| Total Premium | ₹5,900 | ₹5,900 |
Impact of 0% GST Travel Insurance India
The GST on travel insurance in India 2025 update is expected to have a significant impact on both the travel insurance sector and the tourism sector. With an affordable safety net, the number of people purchasing travel insurance is expected to increase significantly. Take a look at some possible impacts:
- 18% direct savings: The 18% GST that was previously added to the premium will now translate directly into savings for travellers.
- More cost-effective for family and group travellers: If you are travelling with family or in a group, you will enjoy significant savings on the total premium amount.
- Benefits for students and budget travellers: Students can now afford better coverage, easing their financial stress while travelling.
- Increased insurance adoption: Removing GST on travel insurance makes it more affordable, encouraging more travellers to purchase it without hesitation.
How to Buy Travel Insurance Without Paying GST
So, what about enjoying these extra savings while still staying protected against all those unexpected travel hiccups, like trip delays, lost baggage, or medical emergencies? With 0% GST on travel insurance premiums, it’s the perfect time to secure your trip with Care Health Insurance. Wondering how to get started? Here’s a quick step-by-step guide to buying your policy hassle-free:
Step 1: Visit the Care Health Insurance website and click on the Travel Insurance section.
Step 2: Select your destination and trip duration.
Step 3: Enter your trip details. Fill in the basic information, such as travel dates, age of the travellers, and any other relevant information.
Step 4: Once you fill in the details, you will see the premium with 0% GST travel insurance.
Step 5: Customise your coverage (optional) and add any extra benefits you may want, such as coverage for adventure sports, refund of visa fee, etc.
Step 6: Complete your payment online. You will only pay the base premium with no extra GST, which means real savings!
Your policy document will be emailed to you immediately. You are now covered and travel-ready!
Conclusion: A Welcome Move for Indian Travellers
The festive season is around the corner, and it’s that time of year when many Indians start planning their annual international trips. So, what better time than now to delight travellers with 0% GST on travel insurance premiums?
With this change making travel insurance more affordable, more people are likely to opt for coverage, saving themselves from future regrets such as substantial medical bills, loss of documents, sudden flare-ups of pre-existing conditions during travel, or even personal accidents. Safety should never be overlooked, especially when you’re in a foreign country. So, take advantage of the new GST reforms and use those extra bucks to create new memories and experiences.
Wishing you happy and safe travels!
Disclaimer: Plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.
