Planning a holiday or a quick business trip often comes with a checklist of flights, hotels, and yes, travel insurance. For many, insurance feels like a safety net, but the final premium often raises eyebrows, especially when taxes add an unexpected layer of cost. That's about changing.
From
22nd September, travel insurance policies in India will no longer attract GST, bringing an
18% reduction in premiums. This move is a game-changer for travellers. Lower premiums mean more affordable protection, making it easier for individuals and families to secure comprehensive coverage without stretching their budgets. Whether you're a frequent flyer or planning your first international trip, this change ensures peace of mind without financial surprises.
At
Reliance General Insurance, we're committed to making travel safer and simpler. With GST removed, our travel insurance plans now offer even greater value, so you can focus on your journey while we take care of the risks.
GST Exemption on Travel Insurance and what Does It mean for you?
Historically, everyone who bought travel insurance in India had to pay an extra 18% GST on top of their discounted premium. This meant even if you snagged a big discount, that tax could edge the cost back up significantly. However, any individual or family travel plan bought after 22nd September 2025 will be exempted from GST.
For example, If your single-trip premium was ₹10,000, you would have ended up paying ₹11,800 in total after adding GST. With GST exemption now available on select policies, the same cover will cost just ₹10,000– all benefits, no hidden surge.
|
Scenario |
Before (Until Sept 21, 2025) |
After (From Sept 22, 2025) |
|
GST Rate | 18% GST on premium | 0% GST (exempted) |
|
Example Premium | If your annual premium was
₹10,000, you paid
₹1,800 as GST (18%), bringing your total to ₹11,800 | If your annual base premium was
₹10,000, your premium now stays ₹10,000, with no added tax. |
|
Impact on You | Higher cost of premium due to GST | Lower premiums and more affordable travel insurance |
Benefits of GST exemption on Travel Insurance
Immediate Savings
Every travel insurance plan carried 18% GST, increasing the final cost for the policyholders. With the GST exemption, your international & domestic trips can now be covered at a lower price without you having to compromise on coverage.
Transparent Pricing
Travellers now pay the real premium, not a hidden higher price. No more tax surprises at the checkout. Travellers can use these savings to opt for higher coverage limits or additional benefits without exceeding their budget.
Insurance Accessibility
Lower pricing has made travel insurance more accessible than ever. With GST removed, travellers can now secure comprehensive coverage without worrying about their budget. This change means more people can confidently insure their trips.
Reliance Travel Insurance Plans—Before & After GST Exemption
With GST on travel insurance premiums reduced to 0% from 22nd September 2025, policyholders can now enjoy even greater savings.
|
Plan / Coverage Type |
Premium (Old, 18% GST) |
Premium (New, 0% GST) |
| International Travel Insurance | ₹15,000 + ₹2,700 (GST) = ₹17,700 | ₹15,000 |
| Annual Multi-Trip Insurance | ₹22,000 + ₹3,960 (GST) = ₹25,960 | ₹22,000 |
| Student Travel Insurance | ₹10,000 + ₹1,800 (GST) = ₹11,800 | ₹10,000 |
Disclaimer: Premiums are illustrative and may change depending on several factors. Actual rates may vary based on destination, sum insured, trip duration, and other conditions. Contact us for exact calculations.
Key Factors that Influence Travel Insurance Premiums
-
Age
Younger travellers generally pay lower premiums because they pose fewer health-related risks compared to older travellers.
-
Trip Duration
The length of your journey directly impacts the cost. Longer trips usually mean higher premiums due to the extended risk period.
-
Destination
Travelling to countries with high healthcare costs or perceived risks— such as the USA or Europe can increase your premium.
-
Number of Travellers
The more people covered under a single plan, the higher the premium. Individual policies are typically more affordable than family plans.
-
Coverage Limits
Opting for higher limits on medical expenses, personal liability, or trip cancellations will raise your premium.
-
Add-On Benefits
Additional coverages, such as adventure sports or extra baggage protection, increase the overall cost. Choose add-ons wisely based on your travel needs.
How to Buy 0% GST Travel Insurance?
Step 1: On our homepage, navigate to Explore Products -
Travel Insurance.
Step 2: Select your travel type, mobile number, email address and travel destination.
Step 3: Select the desired plan and click "Buy Now".
Step 4: Go through your premium details, enter your personal information and select your preferred mode of payment.
Step 5: Once payment is successful, the details of your travel insurance, along with the softcopy of your policy papers, will be sent to your given email address.
Key Takeaways
When it comes to safeguarding your journey, Reliance General Insurance offers more than just affordability. Our travel insurance plans provide comprehensive protection, covering medical emergencies, trip cancellations, lost baggage, and more without hidden costs. With GST removed, these benefits now come at an even better value, making it easier for travellers to secure peace of mind without overshooting their budget. Backed by 24x7 worldwide assistance, and a quick, hassle-free claims process, Reliance General Insurance ensures your travel experience remains smooth and worry-free. Explore our full range of travel insurance solutions and make your next trip safer and simpler.
FAQs on Travel insurance 2025
Does 0% GST on travel insurance apply to all policies?
0% GST is applicable only to individual, family and student travel insurance policies for both domestic and international trips.
How to calculate GST on insurance premiums?
GST is no longer applicable on travel insurance. The premium amount quoted after the applicable discounts is the final premium that needs to be paid, with no additional GST amount.
Can I claim GST on travel insurance?
No, you cannot claim GST on personal travel insurance policies as an input tax credit (ITC). ITC is only available for business-related expenses under GST law. For individual travellers purchasing travel insurance for leisure or personal trips, GST paid earlier was a non-recoverable cost. However, with the recent exemption effective
22 September 2025, GST on travel insurance premiums has been reduced to
0%, meaning you no longer pay any tax on your policy.
What parts of my travel insurance are taxable, and how will the new GST exemption impact the overall cost of my plan?
Previously, the entire premium amount for travel insurance including coverage for medical emergencies, trip cancellations, baggage loss, and personal accident—was subject to 18% GST. For example, a policy with a base premium of ₹1,000 would cost ₹1,180 after GST. With the new exemption, no GST applies to individual family, student, senior citizen, and multi-trip policies, so you pay only the base premium.