New Delhi, Nov 6 (NationPress) The Chief Executive Officer and Managing Director of Life Insurance Corporation, R. Doraiswamy, announced on Thursday that the organization has fully transferred the advantages of the recent Goods and Services Tax (GST) exemption to its clientele.

In a statement following LIC's Q2 financial results, Doraiswamy remarked: "At LIC, we have ensured that all intended benefits stemming from GST modifications are conveyed to our customers." This initiative makes life insurance more accessible for policyholders and is anticipated to enhance insurance penetration throughout India, aligning with the national vision of "Insurance for All by 2047".

As part of GST 2.0, the government has exempted all individual life and health insurance premiums from GST, effective September 22, 2025. Previously, life insurance premiums faced GST rates of up to 18 percent.

LIC anticipates that the exemptions on life insurance products will stimulate business volumes, drive top-line growth, and offer opportunities for cost optimization.

Doraiswamy noted that the value of new business for the public sector life insurer at the conclusion of Q2 FY26 has surged to 17.6 percent, up from 16.2 percent the previous year.

LIC continues to dominate the market with a comprehensive market share of 59.41 percent, based on first-year premium income.

The insurer's annual premium equivalent (APE) growth during the first half of FY26 was subdued, attributed to last year's master circular and a complete overhaul of products to meet the September 30 deadline, according to the CEO.

He linked the lackluster performance to a high comparative base from the previous year but expressed hope for substantial growth in the second half. "We are observing promising traction in the latter half of the current year," he added.

The company expects business to experience accelerated growth due to the GST rate reduction.

In the non-participating (non-par) segment, LIC recorded growth but stated it is not pursuing a specific market share. The company has focused on non-par products since its listing. "We believe that with 36.31 percent, we have achieved sufficient momentum in non-par, and with all the efforts we have made in the past, we anticipate it will stabilize. We are not specifically targeting a figure," Doraiswamy stated.

The insurer's digitalization efforts are advancing steadily, with internal testing and pilot runs currently in progress. A new platform version is expected to launch shortly and will continue to evolve, he added.

On Thursday, LIC reported a remarkable 32 percent increase in standalone net profit, reaching Rs 10,053.39 crore for the second quarter of the current fiscal year, compared to Rs 7,620.86 crore in the same period of the prior fiscal year.

The net premium income for life insurers grew 5.5 percent year-on-year to Rs 1.26 lakh crore during the July-September quarter, up from 1.2 lakh crore in the same period last year, while the solvency ratio improved to 2.13 percent from 1.98 percent in the year-ago period.