The festive season is on and it’s the perfect time to pack your bags, explore new destinations and bring out the traveller in you. Whether you are planning a domestic vacation or an international trip, the deal is further sweetened by 0% GST on individual and travel insurance plans starting September 22, 2025. Yes, you read it right. If you buy a travel plan (individual or family) on or after September 22, 2025, you don’t have to pay any GST on the base premium. Earlier, such policies were subject to a GST of 18%.
From 18% to 0%: What this means for your travel budget?
The 0% GST on individual and family travel insurance policies can significantly reduce your travel budget. The savings could be substantial if you are a travel aficionado and undertake several trips. Let’s understand how the next-gen GST can help you save big.
Suppose, you are a family of four looking to travel to Thailand and the base premium of your Thailand travel insurance policy is ₹6000. Before September 22, 2025, an 18% GST on it meant paying a total premium of ₹7080 (₹6000 base premium + ₹1080 GST). With GST being removed from September 22, 2025, you can expect a flat savings of ₹1080, which is enough for a special dinner or a memorable family activity on your trip.
The smart traveller’s guide: When to buy your policy?
While the reduction in GST rates to zero will undoubtedly result in savings, it’s essential to strategically plan your purchase to derive maximum advantage. This largely depends on the time of your travel. Here’s how:
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Planning a trip for October or later
If you are planning a trip in the month of October or any time later in the year, it’s advisable to buy travel insurance. In fact, buying your travel insurance now means you’ll pay no GST on your policy, maximizing your savings.
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Travelling within the next two weeks
While everybody loves to save, trip security is non-negotiable. If you are travelling within the next two weeks, safety is paramount and your travel policy. there’s good news: all travel insurance purchased from September 22, 2025, onwards is free of GST. So you can secure your trip and save simultaneously.
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Already bought insurance for a future trip
If you’ve already purchased insurance for a future trip, do note that your coverage is fully active. While the GST paid can’t be refunded, you get complete peace of mind. This is because you know your journey is protected from what-ifs.
Travel with confidence and extra savings
With Indians emerging as globe trotters, the move to slash GST on individual and family travel insurance policies couldn’t have come at a better time. Not only will it make travel insurance more affordable, but also ensure there’s little reason to give it a miss. Affordable and essential, travel insurance is your gateway to worry-free travel and creating everlasting memories.
Ready to plan your worry-free adventure. Get your GST-free travel insurance quote today!
Frequently asked questions
1. Does 0% GST apply to all travel policies?
Ans- 0% GST is applicable only to individual, family and student travel insurance policies.
2. Does this change my coverage for medical emergencies or cancellations?
Ans- No, it doesn’t. The policy benefits, its terms and claims process remain the same. Only the premium you pay gets reduced.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.
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