Zero GST On Travel Insurance
Zero GST On Travel Insurance
Goods and Services Tax (GST) is an indirect tax levied on goods and services provided in India. Earlier, GST on travel insurance was applied at the rate of 18% on the base premium amount.
The GST Council has recently announced a reduction in this rate from 18% to 0%. This applies to domestic and international travel insurance plans purchased for individuals and families after 22nd September 2025.
If you had purchased a travel insurance plan earlier with a base premium of ₹2,000, you would have paid ₹2,360 after adding travel insurance GST. Now, you can purchase the same plan at just the base premium of ₹2,000.
Apart from reducing your out-of-pocket expenses, this zero GST rate also helps you access wider and better coverage options within your budget.
Let us understand more about this change applicable to GST on travel insurance premiums and how you can maximise your benefits.
Does GST Affect Your Travel Insurance Premium?
Earlier, the travel insurance GST rate was applied at 18% on the base premium across all types of travel insurance plans. This had a significant impact on the overall cost.
However, with the introduction of 0% GST rate, the total premium amount payable has reduced and become more affordable.
Let us understand this difference with a few examples.
- Individual Travel Insurance Policy
Assume that you are travelling to Australia for a week and wish to purchase the TATA AIG Travel Insurance - International Plus policy that offers a sum insured of up to ₹5 lakhs.
The base premium and total premium before and after the GST rate cut are as follows:
| Premium | Before Travel Insurance GST Rate Cut (GST at the rate 18%) | After Travel Insurance GST Rate Cut (GST at the rate 0%) |
|---|---|---|
| Base Premium Amount | ₹1,127 | ₹1,127 |
| GST Amount | ₹203 | 0 |
| Total Amount Payable | ₹1,330 | ₹1,127 |
Please note: The premium amount payable is illustrative and may vary for travellers based on their individual circumstances and the policy terms and conditions.
Use our travel insurance premium calculator for an accurate estimate.
- Individual Travel Insurance Policy with Add-on Cover
Now, suppose you want to include an add-on, such as the Accident Bundle for adventure sports. The additional premium for this add-on will be added to the base premium.
In this scenario, the base premium and total premium before and after the travel insurance GST rate cut are as follows:
| Premium | Before Travel Insurance GST Rate Cut (GST at the rate 18%) | After Travel Insurance GST Rate Cut (GST at the rate 0%) |
|---|---|---|
| Base Premium Amount | ₹1,127 | ₹1,127 |
| Premium for Add-on | ₹2,549 | ₹2,549 |
| Total Premium | ₹3,676 | ₹3,676 |
| GST Amount | ₹662 | 0 |
| Total Premium Payable | ₹4,338 | ₹3,676 |
Please note: The premium amount payable is illustrative and may vary for travellers based on their individual circumstances and the policy terms and conditions.
Use our travel insurance premium calculator for an accurate estimate.
- Family Travel Insurance Policy
Let us now consider that you are travelling to Australia with your spouse and son as a family and want to purchase the same TATA AIG Travel Insurance - International Plus policy with a sum insured of up to ₹5 lakhs per traveller.
In this scenario, the base premium and total premium before and after the GST rate cut are as follows:
| Premium | Before Travel Insurance GST Rate Cut (GST at the rate 18%) | After Travel Insurance GST Rate Cut (GST at the rate 0%) |
|---|---|---|
| Base Premium Amount | ₹3,382 | ₹3,382 |
| Total Discount | ₹169 | ₹169 |
| Total Premium | ₹3,213 | ₹3,213 |
| GST Amount | ₹578 | 0 |
| Total Premium Payable | ₹3,791 | ₹3,213 |
Please note: The premium amount payable is illustrative and may vary for travellers based on their individual circumstances and the policy terms and conditions.
Use our travel insurance premium calculator for an accurate estimate.
From the above examples, it is evident that GST no longer affects your travel insurance premium.
GST on Travel Insurance: Effective Date
The 0% GST rate applies to travel insurance plans purchased on or after 22nd September 2025. If you bought a policy for a future trip before this date, the coverage and policy conditions will remain unchanged. In such cases, you will not be eligible for a refund.
You may work out the cancellation charges and compare them with the benefit of purchasing a new policy at the 0% GST rate. Regardless of your decision, ensure that you have adequate coverage for complete protection during your trip.
Types of Travel Insurance Plans Where 0% GST is Applicable?
- Domestic Travel Insurance
Offers coverage for unexpected expenses that may occur during trips within India. It is suitable for individuals and families travelling anywhere within India for leisure or business purposes.
Buy Domestic Travel Insurance now at 0% GST
- International Travel Insurance
Offers protection against travel and medical emergencies that could disrupt your international trip. It is ideal for individuals and families seeking comprehensive coverage for their travel to any foreign destination.
Travel insurance GST rate reduction can be a great advantage in lowering the premium, especially when you travel abroad with family and for a longer duration.
Buy International Travel Insurance now at 0% GST
- Family Travel Insurance
Covers multiple family members under a single policy. It is suitable for families planning vacations within India or abroad.
Family travel insurance plans offer a discounted premium. The benefit of travel insurance GST is claimable on this reduced premium.
Buy Family Travel Insurance now at 0% GST
- Senior Citizen Travel Insurance
Designed specifically for individuals above 60 years of age. This policy provides financial protection against travel-related risks and assistance services during the trip.
The zero GST rate is especially beneficial for senior citizens seeking comprehensive coverage through an inexpensive travel insurance policy.
Buy Senior Citizen Travel Insurance now at 0% GST
- Student Travel Insurance
Designed exclusively for students travelling abroad for higher education. This is a perfect choice for students in search of an affordable or cheap travel insurance policy.
Buy Student Travel Insurance now at 0% GST
- Schengen Travel Insurance
Offers extensive coverage against travel-related risks for travellers planning a trip to Schengen countries. It is suitable for individuals and families travelling for leisure or business reasons.
[Buy Schengen Travel Insurance now at 0% GST](https://www.tataaig.com/travel-insurance/travel-insurance-schengen)
- Asia Travel Insurance
Covers travel and medical-related risks for trips to Asian countries. Individuals and families on a vacation and business travellers on an official duty travelling to Asian countries can benefit from this coverage.
Buy Asia Travel Insurance now at 0% GST
- Annual Multi-Trip Travel Insurance
Covers multiple trips during the travel insurance policy period. It is an ideal policy for frequent travellers. They can purchase a single policy at 0% GST on travel insurance premiums and at the beginning of the year, instead of purchasing a separate policy every time they plan a trip.
Key Benefits of Zero GST For Travel Insurance Buyers
- Lower Premium Costs
With the zero GST rate, you can benefit from a lower premium and affordable travel insurance. This lets you choose a travel insurance policy that offers broader coverage within the budget that you had planned for your travel insurance.
- Simplified Pricing
The exemption applicable to travel insurance GST has simplified the premium breakdown. This makes it easier for you to compare travel insurance policies and make an informed financial decision.
- Transparency
With GST now at 0%, the base premium is the actual amount you pay. There are no taxes or charges added at checkout. Now you know what is covered and the exact amount you are paying for it.
- Cost Savings on Annual Policies
The 0% GST on travel insurance is especially beneficial if you are a frequent traveller. You can pay a reduced premium upfront on your multi-year annual policy and ensure financial security for all your trips throughout the year.
So, why wait? Isn’t now the best time to secure your travel insurance?
Which Parts of Your Travel Insurance Policy are Free from Tax After 0% GST?
The travel insurance GST rate is applicable to the total premium amount payable for your policy. It is not restricted to certain components or inclusions.
- Medical, baggage, and travel cover
Travel insurance offers comprehensive coverage against unexpected expenses that may arise due to baggage issues, travel disruptions, or medical emergencies during your trip.
And the GST on travel insurance applies to the total premium payable for this comprehensive coverage.
Medical Cover Covers unexpected medical expenses due to injury or illness, emergency evacuation, accidental death or dismemberment, and repatriation of remains.
Baggage Cover Covers the total loss or delay of your checked-in baggage during your journey.
Travel Cover Covers unplanned expenses arising from trip cancellations, trip curtailments, flight delays or cancellations, loss of passport, missed flights, personal liability, and more.
The coverage amount and policy conditions may vary depending on the type of travel insurance plan you choose to purchase.
- Optional Add-ons
If you have included optional add-ons in your travel insurance policy, the additional premium is added to your base premium to calculate the total premium.
The zero GST rate is applied to this total premium. Hence, if you include optional add-ons, the entire premium amount, including the add-ons, is exempt from GST.
- Discounts
Yes, travel insurance discounts are directly applied to the premium. As GST is calculated on the premium, you benefit from the 0% GST on the reduced premium.
Checklist for Travellers: Paying Premiums in the 0% GST Era
Base Premium
Determine the Cost of Add-ons
Optional add-ons increase your base premium. Although the GST on travel insurance premiums is now nil, it is important to understand how much these add-ons increase your base premium.
This helps you plan better and include the optional covers you actually need if you are looking for the best cheap travel insurance policy.
- Review policy conditions
Always read the policy document carefully to understand what is covered and not covered under your travel insurance policy. While the travel insurance GST rate cut does not affect coverage, it is essential to know the policy terms before purchasing.
- Compare Travel Insurance Plans
Compare the different travel insurance plans, their coverage features, and benefits before making a choice. As the zero GST on travel insurance lowers the premium, you can now access low-cost travel insurance with wider coverage options.
- Understand the Claim Settlement Process
Make yourself aware of the claim settlement process to ensure you take the right steps during unforeseen incidents and receive timely benefits.
Conclusion
The removal of 18% GST on travel insurance is a significant reform that benefits all travellers, whether exploring domestic or international travel destinations. It paves the way for a wide range of budget-friendly travel insurance plans with extensive coverage.
By lowering premiums and simplifying travel budgeting, this change encourages more travellers to protect their journeys with affordable travel insurance.
From now on, choose from a variety of travel insurance plans with comprehensive and adequate coverage and make the most out of the 0% GST on travel insurance!
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
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