The industry will largely pass on the entire benefit of GST rationalisation to policyholders, says Tapan Singhel, managing director and CEO, Bajaj Allianz General Insurance. He tells Geeta Nair that in the short term, it is a wait-and-watch approach, while affordability will drive growth in the long run. Will there be a reduction in premiums for policyholders? How much will the premium be reduced, and what will be the pass-through of the GST rate cuts? Will affordability drive demand? Yes, customers will see an immediate reduction of 18% in the premium outgo because the GST has been brought down to zero. For new purchases made on or after September 22, and for upcoming renewals, this benefit will be directly passed on to policyholders. Most health policies are annual, so people will experience the benefit during renewals. This is a significant move as insurance becomes more affordable, and I believe it will encourage more families to come under the protection of health cover.