Health insurance reported the fastest growth among major non-life segments, rising 15% year-on-year to a record gross premium of ₹1.37 lakh crore in FY26. The expansion was primarily driven by strong traction in retail health policies following the Goods and Services Tax (GST) rate reduction late last year.
Of the total health insurance premium of ₹1.37 lakh crore, retail health insurance grew 20% year-on-year to ₹56,696 crore, while group (employer-employee) insurance rose 13% to ₹68,641 crore, according to latest provisional data from the General Insurance Council.
Retail health insurance has maintained strong momentum, with monthly growth in the range of 35–40% after the government exempted individual health policies, including family floaters and senior citizen covers, from GST with effect from September 22, 2025.
As a result, the share of retail in total health premiums increased to 41% from 39% in FY25, while group health insurance contribution declined to 50% from 51.16% a year ago. India’s non-life insurance industry closed FY26 with a 9% year-on-year increase in gross direct premium income at ₹3.36 lakh crore.
The non-life segment includes public sector and private general insurers, standalone health insurers, and specialised public insurers. Health insurance accounts for 41% of the ₹3.36 lakh crore gross premium of the non-life industry.
Motor insurance reported a 9% year-on-year increase in gross premiums to ₹1.08 lakh crore, crossing the ₹1 lakh crore mark for the first time. Although the GST on motor insurance remain unchanged at 18%, the segment also benefited from the GST rate cut on small cars and two-wheelers from 28% to 18%.
Record high annual automobile sales
The automobile industry recorded its highest-ever annual sales of 28.7 million units in FY26, driven by a strong recovery in the second half and improved consumer sentiment following the GST reduction. However, motor insurance share remained largely unchanged at around 32% of the total industry premiums, reflecting the absence of price revisions in motor third-party insurance for more than three years.
Third-party insurance are mandatory and crucial for the industry, contributing nearly 60% of total motor premiums and about 19% of the overall general insurance industry premium. Miscellaneous insurance, led by crop insurance, was the only segment to report a decline during the year.
The segment saw an 18% drop in gross premium to ₹31,931 crore, with crop insurance falling 28% to ₹19,216.49 crore. Marine insurance reported a modest 6% year-on-year growth to ₹5,819.52 crore, while aviation insurance remained largely flat at ₹1,089.27 crore.