Aditya Birla Sun Life Insurance (ABSLI) is a 51:49 joint venture between the Aditya Birla Group and Sun Life Financial Inc., a Canadian financial services organization. Incorporated on August 4, 2000, it commenced operations on January 17, 2001. ABSLI offers a wide array of life insurance products, including Protection Plans like ABSLI DigiShield Plan and ABSLI Life Shield Plan, providing financial security to the family in case of the policyholder’s death with options for tailored coverage and predictable payouts, and some plans like Return of Premium plans that may return premiums if the policyholder survives the term. Wealth with Protection Plans include Unit Linked Insurance Plans (ULIPs) such as ABSLI Wealth Max Plan and ABSLI Fortune Elite Plan, combining investment and insurance. Savings Plans like ABSLI Nishchit Aayush Plan and ABSLI Assured Savings Plan offer guaranteed income or additions along with life cover. They also provide Retirement and Pension Solutions designed for post-retirement income, Children’s Future Plans to secure financial futures, Health Plans covering hospitalization and critical illnesses, and Traditional Term Plans. ABSLI has a nationwide presence through a multi-channel distribution network including branches, bancassurance partners, direct selling agents, corporate agents, brokers, and its website. As of June 2022, it had over 340 branches, 8 bancassurance partners, and over 49,000 direct selling agents. As of June 2022, the total Assets Under Management (AUM) of ABSLI stood at around ₹606,604 million. In Q1 FY 2022-23, it recorded a gross premium income of ₹26,197 million, showing significant year-on-year growth. ABSLI serves over 1.6 million active customers and has a large employee base. The company boasts a high claim settlement ratio, indicating its commitment to honoring claims promptly; for individual business, the claim settlement ratio was reported as 98.40% in a recent report.
Aditya Birla Health Insurance (ABHICL) is a joint venture between Aditya Birla Group and MMI Holdings of South Africa. Incorporated in 2015, it commenced operations in October 2016. ABHICL focuses on offering a range of health insurance products with unique offerings, including chronic care and incentivized wellness programs. Their offerings include individual and family health insurance plans, critical illness insurance, personal accident insurance, and group health insurance. Some plans offer features like HealthReturns™ where policyholders can earn back a portion of their premium by staying healthy. They also cover modern treatments and a wide range of daycare procedures. ABHICL has a growing distribution presence across India through branches, partner offices, bancassurance partners, and direct selling agents, covering over 2800+ cities. As of Q1 FY22, ABHICL covered more than 22 million lives. ABHICL emphasizes a ‘Health First’ approach, motivating customers to engage in wellness activities through programs and digital platforms.
Latest News on Aditya Birla Insurance
Latest claim settlement ratio of health and general insurers released by IRDAI in 2026: Acko, Aditya Birla, Galaxy lead; Shriram, IFFCO Tokio fall below 90%
When it comes to health and general insurance policies, policyholders expect prompt claim settlements from insurers in times of emergency. The real test of any insurance policy lies in how fairly and quickly claims are settled. To gauge an insurer’s efficiency, checking the claim settlement ratio is a reliable way. The Insurance Regulatory and Development Authority of India (IRDAI) releases a list of claim settlements by all health and general insurance companies every year.
According to the latest figures for FY 2024-25, the claim settlement ratio of various insurers has been revealed. Among private general insurers, Acko General Insurance took the lead with 99.98% of claims paid within 3 months, followed by Reliance General Insurance Co. Ltd. with a ratio of 99.32%. On the other hand, Kshema General Insurance Co. Ltd. had the lowest claim settlement ratio of 26.88% among private sector insurers.
Among public insurers, The Oriental Insurance Co. Ltd. settled 90.17% of its claims within 3 months. The New India Assurance Co. Ltd. and National Insurance Co. Ltd. had a claim settlement ratio of 91.75% and 91.79%, respectively.
In the standalone health insurance sector, Aditya Birla Health Insurance Co. Ltd., Galaxy Health Insurance Co. Ltd., Narayana Health Insurance Co. Ltd., and Niva Bupa Health Insurance Co. Ltd. each reported a 100% claim settlement ratio, with all claims settled within three months.
The claim settlement ratio refers to the percentage of claims that an insurer pays or settles out of the total number of claims it receives during a certain period. For instance, a health insurance company with a claim settlement ratio of 95% typically pays around 95 of every 100 claims it receives.
It’s essential for policyholders to check the claim settlement ratio of their insurer to ensure they are getting fair and prompt claim settlements. The IRDAI’s annual list of claim settlements provides a reliable source of information for policyholders to make informed decisions. By checking the claim settlement ratio, policyholders can gauge their insurer’s efficiency and make informed decisions about their insurance policies.
In conclusion, the claim settlement ratio is a crucial factor to consider when choosing a health or general insurance policy. Policyholders should check the claim settlement ratio of their insurer to ensure they are getting fair and prompt claim settlements. The IRDAI’s annual list of claim settlements provides a reliable source of information for policyholders to make informed decisions about their insurance policies.
Insurers to charge 18% GST on agents’ commission, Input Tax Credit issue
The Indian government’s decision to reduce the Goods and Services Tax (GST) on health insurance premiums from 18% to 0% has had an unintended consequence on the insurance industry. Insurers are now imposing an 18% GST on commissions paid to agents and distributors to offset losses from the withdrawal of input tax credit (ITC). This move has come as a major blow to insurance intermediaries across the country.
The GST cut means that insurers can no longer claim ITC on commissions, rewards, and other corporate expenses such as rent, technology, and manpower. As a result, insurers are passing on the GST cost to agents and distributors, which could squeeze smaller distributors and individual agents. For example, if the commission for a sale is Rs 100, the amount payable will reduce by 18% to Rs 84.74.
Industry experts warn that this new structure could make health insurance distribution less profitable or unviable for many agents, unless companies revise commission structures or offer alternative incentives. While customers may gain marginally from lower premiums, the ripple effects are being felt sharply across the industry. Insurers face higher operating costs, and distributors face lower earnings.
The problem stems from how the GST framework treats exemptions. For a company to claim input tax credit, there must be a GST component on its output. With the health insurance sector’s GST set to nil, insurers lose this offset mechanism, and expenses on rent, IT systems, advertising, outsourcing, and agent commissions will add up as unrecoverable costs.
Several insurance companies, including Aditya Birla Health Insurance, Care Health Insurance, Star Health Insurance, and ICICI Lombard General Insurance, have acknowledged the challenge and are passing on the GST cost to distributors. They have reiterated their commitment to passing on the entire GST benefit to customers, but noted that the exemption benefits customers while simultaneously increasing operational costs for insurers. The companies have stated that they will absorb the impact of GST on expenses, but will pass on the GST on commissions to distributors to maintain equilibrium and protect customer interests.
Bombay High Court’s stay brings GST relief to over a dozen insurers
The Bombay High Court has granted a temporary stay on a substantial demand and associated penalties by the Goods and Services Tax (GST) authorities, providing relief to over a dozen insurance companies. The insurance companies, including Aditya Birla Health Insurance, Oriental Insurance, and ICICI Lombard General Insurance, among others, had approached the court challenging the demand raised by the GST authorities, which totaled over Rs 10,000 crore. The court’s stay order brings immediate relief to the insurance companies, which had been facing significant uncertainty due to the GST demands.
The insurance companies had argued that the demand was in contravention of circulars issued by the Central Board of Indirect Taxes and Customs (CBEC) on October 11, 2024, and January 28, 2025, which were issued in pursuance of a decision taken by the GST Council. The companies’ counsel, Senior Advocates Arvind Datar and Rohan Shah, pointed out that in six cases, similar demands had been dropped by jurisdictional officers in Meerut, Delhi, and Pune, and two cases in Mumbai, and argued that the same approach should be adopted in the present case.
The court’s decision is seen as a significant relief for the insurance industry, which had been facing challenges due to the GST demands. The insurance regulator had changed the expense of management guidelines post the tax notices, giving relief to insurers. The GST Council had already recommended a clear position on co-insurance premium and ceding commission, which was subsequently implemented through CBIC circular clarifications. The court’s order reinforces that such circular-based guidance cannot be disregarded in assessment proceedings.
The matter will now be tested on its merits, but the interim protection itself is a meaningful safeguard for the insurance companies facing legacy exposes. The court will hear the matter further on February 18. The temporary stay on the GST demand is expected to provide a significant reprieve to the insurance companies, allowing them to continue their operations without the uncertainty of the substantial tax demand hanging over them.
Bombay High Court stays GST demands on co-insurance premiums.
The Bombay High Court has provided temporary relief to several insurance companies, including ICICI Lombard General Insurance, Aditya Birla Health Insurance, and Tata AIG General Insurance, by staying Goods and Services Tax (GST) demands on co-insurance premium and ceding commission. The court’s decision was based on the argument that the levy was contrary to circulars issued by the Central Board of Indirect Taxes and Customs (CBIC). The insurance companies had approached the court challenging orders passed by GST authorities in Palghar, Maharashtra, confirming the GST demands.
The petitioners, represented by senior advocates Arvind Datar and Rohan Shah, argued that the demands were in violation of CBIC circulars dated October 11, 2024, and January 28, 2025, which were issued pursuant to decisions made by the GST Council. They also pointed out that similar GST demands had been dropped by jurisdictional officers in other cases in Meerut, Delhi, Pune, and Mumbai, following the CBIC circulars. The court was shown an order from one such case to demonstrate the consistent departmental approach elsewhere.
The Directorate General of GST Intelligence had investigated over two dozen insurance companies for allegedly creating shell entities to pay excess commissions and misclassifying expenses to reduce GST liability. The Income Tax Department had also conducted parallel investigations into alleged tax evasion and violations of Insurance Regulatory and Development Authority of India rules. The GST probe focused on alleged fake input tax credit and misclassification of expenses, while the income tax investigation examined suspected tax evasion arising from commission payments in excess of regulatory limits.
The court’s decision has provided much-needed relief to the industry, according to Amit Maheshwari, managing partner at CA firm AKM Global. The court’s intervention highlights the importance of predictable tax administration and consistent field-level implementation. The ad-interim stay will remain in place until the next date of hearing, which is scheduled for after the respondents file their reply affidavits by February 12. The insurance companies will have to wait until then to know the final outcome of their petitions.
India’s Health Insurance Revolution: Insurers Now Prioritize Your Well-being with Preventive Care and Substantial Savings!
The Indian healthcare system is facing a significant challenge due to rising healthcare costs and the burden of out-of-pocket expenses, which account for over 60% of total healthcare spending. Traditional health insurance in India has primarily focused on hospitalization, leaving everyday medical needs uncovered. However, a strategic shift is underway, with insurers prioritizing preventive care and wellness. Mayank Bathwal, CEO of Aditya Birla Health Insurance, explains that this shift is crucial in addressing the core issue of healthcare costs.
The traditional model of health insurance in India has left a significant gap in coverage for regular doctor consultations, diagnostic tests, and medicine costs. These expenses place a heavy financial strain on Indian households. Expanding insurance to cover outpatient services and preventive check-ups can help manage health proactively, reducing avoidable hospital admissions and making healthcare expenses more predictable.
Digital innovation is key to increasing insurance penetration, with platforms like Bima Sugam streamlining policy purchase and servicing. Aditya Birla Health Insurance’s “HealthReturns” program incentivizes healthy lifestyles, rewarding policyholders for consistent healthy behavior. This approach transforms insurance from a financial product into an active partner in well-being, fostering customer loyalty.
A comprehensive health ecosystem requires collaboration between insurers, providers, and government bodies. Digital infrastructure like ABHA and NHCX fosters transparency and streamlines claims. Aditya Birla Health Insurance aims to transition from a reactive, hospital-centric model to a proactive, holistic health ecosystem. This includes managing chronic conditions with continuous monitoring and digital tools for customer health tracking.
The impact of this strategic shift could be significant, leading to a healthier population, reduced long-term healthcare costs, and increased insurance penetration in India. It may also spur innovation among competitors and influence regulatory frameworks. The shift towards preventive care and wellness is a crucial step in addressing the challenges faced by the Indian healthcare system, and Aditya Birla Health Insurance is at the forefront of this change.
The company’s vision is to create a proactive health ecosystem that manages customer health outcomes and aligns them with insurer sustainability goals. This approach has the potential to transform the healthcare landscape in India, making healthcare more accessible, affordable, and effective. With the use of digital tools, AI-powered technologies, and collaborative efforts between stakeholders, Aditya Birla Health Insurance is poised to make a significant impact in the Indian healthcare industry.
Stock Market Updates for Aditya Birla Insurance
Recent Updates
Aditya Birla Introduces Super Term Plan Offering Health Services and Flexible Coverage Options
Aditya Birla Sun Life Insurance Company Limited (ABSLI) has launched a new term insurance plan called the ABSLI Super Term Plan. This comprehensive plan offers an all-in-one solution that combines life protection with built-in health management services, providing policyholders with enhanced flexibility and financial security. The plan offers three coverage options: Level Cover, Increasing Cover, and Level Cover with Return of Premium. These options allow policyholders to choose from a fixed sum assured, increasing protection by 5% annually, or returning 100% of premiums if they survive to maturity.
The plan also provides flexibility in benefit disbursement, allowing policyholders to receive benefits as a lump sum, monthly income, or a combination of both. Additionally, the plan includes health management services that are accessible throughout the policy term, as well as an Enhanced Life Stage Protection option that allows policyholders to increase their sum assured for major life events such as marriage, childbirth, or home loans.
The ABSLI Super Term Plan also features an Instant Payment facility, which provides specified amounts within one working day of claim registration. Other options include Staggered Death Benefit, which allows for five-year monthly instalments, and Commutation of Income Benefit, which allows policyholders to convert monthly payments to a lump sum.
According to Kamlesh Rao, MD & CEO of ABSLI, the plan is designed to offer comprehensive financial security through flexible coverage, in-built health management services, and protection against life’s uncertainties. ABSLI, a joint venture between Aditya Birla Group and Sun Life Financial, manages assets worth ₹99,496 crore and recorded gross premium income of ₹20,639 crore as of March 2025. The launch of the ABSLI Super Term Plan is a significant development in the insurance industry, providing policyholders with a comprehensive and flexible insurance solution that meets their evolving needs. With its innovative features and benefits, the plan is expected to appeal to a wide range of customers seeking reliable and comprehensive financial protection.
KGMU and Aditya Birla Capital Launch Bone Marrow Transplant Ward to Enhance Cancer Treatment Accessibility in Uttar Pradesh
In a significant development for the healthcare sector in Uttar Pradesh, King George’s Medical University (KGMU) has launched a state-of-the-art Bone Marrow Transplant (BMT) Ward with the support of Aditya Birla Capital Foundation (ABCF) and NGO partner CanKids. The new facility aims to provide affordable and high-quality transplant services, reducing the need for patients to travel outside the state for specialized care. The BMT Ward has been established under a tripartite agreement between KGMU, Aditya Birla Capital, and technical partners, with an initial investment of ₹2.76 crore from ABCF.
The facility is expected to benefit patients from across the region, particularly in oncology and pediatric cancer care. Aditya Birla Capital has committed an additional ₹3.25 crore for Phase II of the project, which will focus on expanding capacity and strengthening critical infrastructure to support a higher volume of bone marrow transplant procedures. The launch of the BMT Ward is a significant addition to Uttar Pradesh’s public healthcare infrastructure and is expected to set new benchmarks in making life-saving bone marrow transplants accessible and affordable.
According to Ms. Vishakha Mulye, MD & CEO of Aditya Birla Capital Limited, the company’s purpose goes beyond financial empowerment and drives inclusive growth and development in healthcare, education, and sustainable livelihoods for underserved communities. The Aditya Birla Capital Foundation serves as the apex body guiding the social development initiatives of Aditya Birla Capital and its group companies, impacting over 700,000 lives annually across 12 states, with a focus on women and girl children.
The establishment of the BMT Ward is a testament to the company’s commitment to creating a positive impact on the community. With the launch of this facility, patients in Uttar Pradesh and neighboring regions will have access to world-class medical care, reducing the need for them to travel to other states for treatment. The BMT Ward is expected to make a significant difference in the lives of patients and their families, providing them with hope and a chance to fight cancer.
Aditya Birla Sun Life Insurance introduces dividend-yielding Unit Linked Insurance Plans (ULIPs)
Aditya Birla Sun Life Insurance has introduced a new fund called Dividend Yield Fund, which will be available under its existing Unit-Linked Insurance Plans (ULIPs). The fund aims to invest primarily in top Indian companies that consistently pay dividends, providing policyholders with a stable source of income. The fund will allocate 80-100% of its portfolio to equities, focusing on financially strong and profitable companies with a track record of paying steady dividends.
The remaining 0-20% of the portfolio may be invested in debt instruments, money market securities, or cash. This diversification will help mitigate risks and provide a stable return on investment. The fund’s investment strategy is designed to help policyholders build long-term wealth by investing in companies with a proven track record of generating consistent returns.
According to Kamlesh Rao, MD & CEO of Aditya Birla Sun Life Insurance, the Dividend Yield Fund has been designed to provide policyholders with a solution that balances protection and performance. The fund aims to offer steady and consistent value creation, making it an attractive option for investors seeking long-term growth. By investing in financially strong and dividend-paying companies, the fund seeks to provide policyholders with a stable source of income and help them achieve their long-term financial goals with confidence.
The launch of the Dividend Yield Fund underscores Aditya Birla Sun Life Insurance’s commitment to providing innovative and customer-centric solutions. The company aims to offer a range of investment options that cater to different risk profiles and investment goals, enabling policyholders to make informed decisions about their financial future. With the introduction of the Dividend Yield Fund, Aditya Birla Sun Life Insurance is poised to strengthen its position in the Indian insurance market and provide policyholders with a unique investment opportunity.
Preventive care is becoming a priority in Indian health insurance, according to Mayank Bathwal of ABHI.
The healthcare costs in India are rising, and as a result, preventive care is becoming a key focus for insurers. Despite progress in coverage, over 60% of healthcare expenses are still borne directly by households, highlighting gaps in traditional insurance models. Mayank Bathwal, CEO of Aditya Birla Health Insurance, explains that conventional health insurance has historically focused on hospitalization, leaving everyday healthcare expenses, such as outpatient consultations and chronic disease management, largely uncovered.
To address this issue, insurers are expanding coverage to include outpatient and preventive care, which helps manage expenses more predictably and reduces avoidable hospitalizations. Affordability is also a challenge that cannot be solved by pricing alone, and reducing healthcare costs through better coordination and promoting preventive care is essential. Innovation in product design and distribution is also crucial to engage first-time buyers, particularly younger consumers who value clarity, relevance, and ease of use.
The use of AI-enabled tools and assisted-digital models can simplify discovery and onboarding, while also enabling insurers to provide faster and consistent service. Building trust and retention is also important, and programs such as ABHI’s HealthReturns, which rewards policyholders for healthy behavior, can help shift the perception of insurance from a reluctant purchase to a valued product.
Collaboration across insurers, healthcare providers, and policymakers is critical to creating a comprehensive health ecosystem. Digital infrastructure, such as ABHA and Bima Sugam, is creating transparency, improving claims processing, and enabling more predictable pricing. Sustained dialogue between providers and insurers helps align treatment protocols and pricing, ultimately benefiting both customers and the insurance ecosystem.
ABHI’s broader vision is to move from a reactive, hospital-focused model to a comprehensive health ecosystem, with a focus on chronic condition management and wellness initiatives. This approach aligns customer health outcomes with the insurer’s sustainability goals and marks a significant shift in the role of health insurance in India. By expanding coverage to outpatient and preventive care, promoting affordability, and building trust and retention, insurers can provide more comprehensive and sustainable healthcare solutions for their customers.
Preventive care is gaining prominence in Indian health insurance, according to Mayank Bathwal of ABHI.
The rising healthcare costs in India have led to a shift in focus towards preventive care, particularly in addressing the significant out-of-pocket spending burden on households. Despite progress in coverage, over 60% of healthcare expenses are still borne directly by households, highlighting the gaps in traditional insurance models. Mayank Bathwal, CEO of Aditya Birla Health Insurance, emphasized that conventional health insurance has historically focused on hospitalization, leaving everyday healthcare expenses largely uncovered.
To address this, insurers are expanding coverage to include outpatient and preventive care, which helps manage expenses more predictably and reduces avoidable hospitalizations. Affordability is also a challenge that cannot be solved by pricing alone, and reducing healthcare costs through better coordination, promoting preventive care, and improving the health profile of insured customers are key levers. Innovation in product design and distribution is essential to engage first-time buyers, particularly younger consumers who value clarity, relevance, and ease of use.
The use of AI-enabled tools and assisted-digital models can simplify discovery and onboarding, while also enabling insurers to provide faster, consistent service. Building trust and retention is also crucial, and programs such as ABHI’s HealthReturns, which rewards policyholders for healthy behavior, can help shift the perception of insurance from a reluctant purchase to a valued product.
Collaboration across insurers, healthcare providers, and policymakers is critical in creating a comprehensive health ecosystem. Digital infrastructure such as ABHA, Bima Sugam, and the National Health Claims Exchange is creating transparency, improving claims processing, and enabling more predictable pricing. Sustained dialogue between providers and insurers helps align treatment protocols and pricing, ultimately benefiting both customers and the insurance ecosystem.
ABHI’s broader vision is to move from a reactive, hospital-focused model to a comprehensive health ecosystem, with chronic condition management programs and digital tools that allow customers to track their health and participate in wellness initiatives. This approach aligns customer health outcomes with the insurer’s sustainability goals and marks a significant shift in the role of health insurance in India. By prioritizing preventive care, affordability, and customer engagement, insurers can create a more sustainable and effective healthcare system.
Policybazaar introduces a 100% claim settlement option for planned hospitalisations on select health insurance policies.
Policybazaar, a leading insurance marketplace, has introduced a 100% claim promise on planned hospitalizations for select health insurance policies. This initiative aims to provide a hassle-free and cashless experience for policyholders, ensuring zero deductions on eligible hospital bills. The benefit is available on specific plans from Bajaj Allianz, Niva Bupa, and Aditya Birla Health Insurance (ABHI).
To avail of this benefit, policyholders must complete certain pre-admission steps and meet policy conditions. These steps include informing the Third-Party Administrator (TPA) 48 hours before hospitalization and choosing a hospital from the insurer’s network. The network includes over 10,000 partner hospitals for Bajaj Allianz, over 2,100 hospitals for Niva Bupa, and a panel of hospitals for ABHI.
The policy-specific details vary across insurers. For Bajaj Allianz, the benefit is available for both new and ported policies with any sum insured, provided a consumables rider is added. For ABHI, the benefit is applicable only to new policies with a minimum sum insured of ₹10 lakh, and pre-admission intimation is required. For Niva Bupa, the benefit is available for both new and ported policies with a minimum sum insured of ₹10 lakh, and the customer must notify the claim team 48 hours prior.
Policybazaar has stated that this initiative will streamline documentation and coordination with hospitals, reducing delays and enhancing the cashless experience. However, claims will not be paid in cases of non-disclosure, waiting periods, or exclusions as per policy terms. The 100% claim promise does not apply to emergency hospitalizations, which will continue to be processed under standard policy terms.
According to Siddharth Singhal, Head of Health Insurance at Policybazaar, this initiative aims to alleviate financial worries during hospitalization, allowing policyholders to focus on their recovery. With this move, Policybazaar aims to provide a more customer-centric and hassle-free experience for its policyholders. The introduction of this benefit is expected to enhance the overall customer experience and increase trust in the insurance marketplace.
On October 8, 2025, insurance agents and associations are likely to raise the issue of Goods and Services Tax (GST) with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry.
The insurance industry in India is facing a significant issue related to the Goods and Services Tax (GST) and Input Tax Credit (ITC). Private insurers have reduced distributor payouts by 15-18% to offset the loss of ITC, following the GST exemption on life and health insurance premiums. This move is expected to have a significant impact on agents, brokerages, and individual advisors, particularly small and independent operators. The reduction in payouts will directly cut into their working capital, leading to reduced take-home income and morale, especially in smaller towns and rural markets.
The current GST framework, if left unadjusted, may set a precedent where insurers maintain profitability by squeezing distribution costs rather than improving efficiency. Industry associations and agents are likely to take up the issue with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry. The President of the General Insurance Agents Federation Integrated stated that the change will shrink access to insurance, which is against the Prime Minister’s vision of Insurance for All by 2047.
In contrast, Life Insurance Corporation (LIC) and other public sector insurers have decided to maintain existing commission structures, even as they pass the full GST relief to policyholders. LIC plans to offset the impact through higher policy sales and new product pricing. Public sector general insurers, including New India Assurance, Oriental Insurance, United India Insurance, and National Insurance, have also opted against cutting commissions, choosing instead to absorb the ITC loss.
Private insurers, on the other hand, are passing on the ITC burden to agents because their business models and cost structures leave little room to absorb additional expenses. The removal of ITC has raised operating costs by roughly 2-3% of premiums, and private companies must adhere to stricter IRDAI Expense of Management (EoM) caps. Absorbing this loss would directly dent profitability and risk regulatory breaches. Several private general and standalone health insurers, including Tata AIG, Aditya Birla Health Insurance, Niva Bupa, Care Health, and ICICI Lombard, have implemented revised commission structures, making payouts inclusive of 18% GST, which means distributors will bear the tax cost.