Usually, no—not solely because the renewal total stayed unchanged. For an Indian individual health policy, first compare the old and new tax lines, base premiums, benefits and policy restrictions. Ask your insurer for an itemized explanation, then obtain like-for-like quotes. Consider portability only when another policy is demonstrably better and the new insurer confirms acceptance and continuity before your existing cover expires.
This article focuses on India’s individual health insurance and the portability rules that apply at renewal. The 2025 GST change also covered individual life insurance, but it was not a universal tax change for every insurance category.
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What the GST cut changed—and what it did not
India’s Department of Financial Services says GST on individual health and individual life insurance fell from 18% to 0%, effective 22 September 2025. The department says the Insurance Regulatory and Development Authority of India (IRDAI) collected premium rates prevailing on 3 September 2025 and monitored new and renewal policies. It also says IRDAI reported on 7 January 2026 that general and health insurers had confirmed they had not increased premiums and that the GST relief had been passed on for individual health and life products. See the Department of Financial Services announcement.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →That establishes the tax rate and the regulator’s industry-level reporting. It does not guarantee that every individual’s renewal payment must be lower than the previous year’s payment. Your total may include a different base premium, changed members, add-ons, deductibles, sum insured or other policy terms. The official statement also does not diagnose why a particular quotation remained unchanged.
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Do not apply the 18%-to-0% change automatically to motor, commercial, group or other insurance without checking the relevant tax treatment. The evidence here is specifically about individual health and individual life policies. Portability guidance in this article concerns health insurance.
Start with the renewal schedule, not the headline total
An unchanged total is a signal to investigate, not proof that an insurer failed to pass on tax relief. Put the prior schedule and the new renewal schedule side by side and identify each component.
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- Find the old and new base premiums. Compare the premium before tax, not just the amount payable. A base-premium change can offset a lower tax charge.
- Check the GST line. Confirm whether GST is shown and what amount is charged on each schedule. The tax line should be considered separately from the insurer’s premium calculation.
- Match the insured people. Check that the same members, ages, family-floater structure and proposer details appear on both documents.
- Match the cover. Compare the sum insured, no-claim or cumulative bonus, deductibles, add-ons and any optional benefits.
- Look for wording changes. Check room-rent and intensive-care-unit limits, waiting periods, exclusions, sub-limits and co-payments.
- Request a written calculation. Ask the current insurer to explain every difference—or the absence of a difference—in writing and to identify the applicable tax treatment.
This is a consumer check, not a way to infer the cause of a quote from the total alone. The insurer’s itemized renewal calculation and your policy documents are the evidence for your particular case.
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Compare policies on equivalent protection
A cheaper quote can simply offer less protection. IRDAI’s policyholder guidance says to examine limits and restrictions as well as premium. Use the IRDAI health-department guidance and the IRDAI health-insurance policyholder page when checking the terms.
| Comparison axis | What to verify | Why it affects value |
|---|---|---|
| Total premium and tax | Base premium, GST line and final amount on both quotes | Separates the tax effect from pricing or cover changes |
| Sum insured and bonus | Base limit and any accrued no-claim or cumulative bonus | A larger headline limit may be conditional or subject to different rules |
| Room and ICU limits | Daily caps, category restrictions and related deductions | A low room limit can increase your out-of-pocket share during a hospital stay |
| Waiting periods | Pre-existing-disease and specified-treatment waiting periods | Changing insurers can expose uncovered periods unless continuity credits are accepted |
| Exclusions and sub-limits | Permanent exclusions, disease or procedure caps and internal limits | Restrictions can make a low premium poor value for the treatment you need |
| Co-payment and deductible | Percentage co-pay, fixed deductible and when each applies | Your share of a claim may be materially higher even when premium is lower |
| Hospitals and cashless access | Eligible hospital and healthcare-provider list in your locations | A policy is less useful if preferred hospitals are outside its network |
| Add-ons and effective date | Optional benefits, acceptance decision and commencement date | Extra cover is valuable only if accepted and active when needed |
Compare the customer information sheet and full policy terms, not only an online quote. Keep a written record of questions and answers, especially where a salesperson describes a benefit that is not obvious in the schedule.
When switching is reasonable
Stay and ask questions first
Staying is generally the sensible first move when your existing cover still fits your medical and financial needs, competing policies are not better on equivalent terms, or the renewal amount has not yet been explained. Request the itemized calculation and give yourself enough time to compare. A tax-related concern alone does not outweigh continuity, known claims procedures and an established hospital network.
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Consider portability for a materially better policy
Portability can make sense when another insurer offers better limits, fewer restrictive sub-limits, more suitable hospitals or a materially better overall price for equivalent cover. The alternative must be evaluated as a complete contract, including underwriting, exclusions, waiting periods, co-payments and deductibles. Obtain the prospective insurer’s decision and the continuity credits it will recognize before treating the move as complete.
Do not use a lapse as a switching strategy
Allowing the old policy to expire while you shop can destroy continuity benefits or leave you uninsured. IRDAI warns that delay in renewal may cause loss of continuity benefits. A portability application is not an accepted policy; it is a request that still has to be processed and approved.
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How health-policy portability works
IRDAI states that portability is allowed at renewal for individual, family-floater and group health insurance policies. For indemnity-based health policies, qualifying credits can include credit for completed waiting periods for pre-existing diseases and specified treatments, along with listed credits such as sum insured, no-claim bonus and the moratorium period, subject to the applicable rules and policy terms.
The acquiring insurer obtains policy and claim information through the Insurance Information Bureau of India portal. Your existing insurer supplies the requested data, and the prospective insurer uses it for underwriting and its portability decision. Continuity is not automatic: ask exactly which credits, limits and waiting periods the new policy will recognize.
| Portability step | IRDAI timing stated on its guidance | Your practical action |
|---|---|---|
| Submit the request | At least 30 days before renewal, but not earlier than 60 days before the renewal due date | Start gathering schedules, claim records and identity documents as soon as the renewal date is known |
| Existing insurer shares data | Within 72 hours of the request through the prescribed information process | Check that the data reflects the correct members, claims and coverage history |
| Prospective insurer decides | Within five days after receiving the information | Obtain the decision, proposed terms and recognized continuity credits in writing |
| Late request consideration | A request within 15 days after renewal may be considered if the insurer can ensure no break in coverage | Do not rely on this exception; confirm in advance that cover will remain continuous |
These are the timelines stated on IRDAI’s consumer guidance. Insurers may require specific forms or documents, and operational rules can change, so confirm the current process with the insurer and the latest IRDAI instructions.
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A safe switching process
- Mark the renewal date. Work backward so the portability request falls within the stated 30-to-60-day window.
- Collect documents. Keep the current policy schedule, renewal notice, claim history, member details, add-on schedule and any medical or underwriting information requested.
- Obtain comparable quotations. Give each insurer the same members, sum insured, deductible and add-ons so the comparison is meaningful.
- Ask for portability terms. Request written confirmation of accepted members, sum insured, exclusions, waiting periods, co-payments, deductibles, recognized credits and any additional underwriting.
- Submit through the prospective insurer. The acquiring insurer initiates the portability information request; retain the application number and copies of every document.
- Review the acceptance. Check that the offer matches what you intended to buy and that the effective date precedes the end of the existing policy.
- Keep the old policy active. Do not cancel or stop paying until the new policy is issued and the continuity arrangement is confirmed.
- Store final records. Save the new schedule, policy wording, endorsements, payment receipt and the written statement of transferred credits.
Questions to put to your insurer
- What were the previous and current base premiums before GST?
- What GST amount was charged on each schedule, and which policy category was used for the calculation?
- Did the insured members, sum insured, bonus, deductibles or add-ons change?
- Which limits, exclusions, waiting periods, sub-limits or co-payments differ from last year?
- Can you provide the renewal calculation and explanation in writing?
- If I apply to port, which continuity credits and waiting-period credits will the new insurer receive?
- What is the application deadline, and what date will the new policy become effective?
Life, group and other policies need a separate check
The Department of Financial Services announcement covers individual life and individual health insurance. This article’s portability procedure is for health policies. Life insurance does not use the health-policy portability process described here, and the tax treatment of a group, motor, commercial or other policy should be confirmed separately. If your renewal is not an individual health policy, ask the insurer or regulator for the rule that applies to that product before deciding to switch.
Decision checklist
- Have you separated the base premium from the GST line?
- Are the old and new schedules identical in members, limits, deductibles and add-ons?
- Have you checked waiting periods, exclusions, sub-limits, co-payments and hospital access?
- Have you requested a written explanation for the unchanged total?
- Does a competing quote provide materially better terms on an equivalent basis?
- Has the prospective insurer confirmed acceptance and the continuity credits it will recognize?
- Will the new policy take effect before the old policy ends?
If the answer to the last two questions is no, do not treat the switch as complete. The prudent sequence is to clarify the renewal, compare equivalent cover and preserve continuous protection; switch only when the new contract is demonstrably better and formally accepted.
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