The SAC code for accident and health insurance services is 997133 in India. From 22 September 2025, eligible individual health insurance policies, including family floater plans, are exempt from GST. Group health insurance and other non-exempt insurance services generally attract 18% GST.
Accident and Health Insurance Services SAC Code – Quick Summary
| Particulars | Details |
|---|---|
| Service name | Accident and Health Insurance Services |
| SAC code | 997133 |
| SAC heading | 9971 – Financial and Related Services |
| SAC group | 99713 – Insurance and Pension Services |
| Individual health insurance | Exempt from GST |
| Family floater health insurance | Exempt from GST |
| Group health insurance | Generally 18% GST |
| Personal accident insurance | Classification and policy-specific GST treatment apply |
| Effective date of individual health insurance exemption | 22 September 2025 |
What Is the SAC Code for Accident and Health Insurance Services?
Accident and health insurance services fall under SAC 997133, covering insurance policies that provide financial protection against accidents, injuries, disabilities and medical expenses.
This classification includes policies covering hospitalisation, medical treatment, accidental death, disability and certain other health-related expenses.
The SAC code identifies the insurance service, while the applicable GST treatment depends on the type of policy and relevant exemption provisions.
GST Rate on Accident and Health Insurance Services
The GST treatment of accident and health insurance changed significantly from 22 September 2025.
Individual health insurance policies, including family floater and senior citizen health policies, became exempt from GST. However, group health insurance policies generally continue to attract 18% GST.
| Insurance service | GST rate |
|---|---|
| Individual health insurance | Exempt (Nil) |
| Family floater health insurance | Exempt (Nil) |
| Senior citizen health insurance | Exempt (Nil) |
| Group health insurance | 18% |
| Employer-provided group health insurance | Generally 18% |
| Standalone personal accident insurance | Depends on policy classification and applicable exemption |
| Accident and health reinsurance | Exempt where covered by the notified exemption |
The exemption applies to qualifying individual health insurance policies and their reinsurance services. It should not automatically be extended to every insurance product classified under SAC 997133.
Types of Insurance Services Covered Under SAC 997133
SAC 997133 includes several accident and health-related insurance services.
1. Individual Health Insurance
Individual health insurance provides financial protection against eligible medical and hospitalisation expenses.
Coverage may include hospital bills, medical procedures, prescribed medicines and other expenses specified in the policy.
Eligible individual health insurance policies are exempt from GST from 22 September 2025.
2. Family Floater Health Insurance
Family floater insurance provides health coverage for multiple family members under a shared sum insured.
These policies are included in the individual health insurance exemption.
For example, a family floater policy covering two adults and their children can qualify for the GST exemption when it meets the applicable policy conditions.
3. Senior Citizen Health Insurance
Senior citizen health insurance provides medical coverage designed for older policyholders.
Eligible individual senior citizen health insurance policies are exempt from GST under the revised provisions.
4. Group Health Insurance
Group health insurance provides medical coverage to a defined group of people, such as employees of a company.
Unlike individual health insurance, group health insurance generally continues to attract 18% GST.
Employers purchasing group health insurance should also evaluate input tax credit eligibility separately.
5. Personal Accident Insurance
Personal accident insurance provides financial compensation for specified accidental injuries, disability or accidental death.
These policies are included in the scope of SAC 997133. However, the GST exemption for individual health insurance should not automatically be assumed to cover every standalone personal accident policy.
The applicable treatment depends on the insurance product and relevant GST notification.
Services Not Covered Under SAC 997133
Certain insurance products have separate SAC classifications.
| Insurance service | SAC code |
|---|---|
| Life insurance services | 997132 |
| Motor vehicle insurance services | 997134 |
| Marine, aviation and other transport insurance | 997135 |
| Freight and travel insurance services | 997136 |
| Other property insurance services | 997137 |
| Accident and health reinsurance services | 997142 |
For example, a motor insurance policy covering damage to a vehicle is classified under SAC 997134 rather than SAC 997133.
Businesses can refer to the motor vehicle insurance SAC code guide for the relevant classification and GST treatment.
GST Calculation for Accident and Health Insurance Services
The GST amount depends on whether the policy qualifies for an exemption.
Example 1: Individual Health Insurance
Suppose an individual purchases an eligible health insurance policy with an annual premium of ₹20,000.
| Particulars | Amount |
|---|---|
| Annual premium | ₹20,000 |
| GST | ₹0 |
| Total premium payable | ₹20,000 |
The eligible policy is exempt from GST under the rules effective from 22 September 2025.
Example 2: Group Health Insurance
Suppose a company purchases a group health insurance policy for its employees with a taxable premium of ₹1,00,000.
| Particulars | Amount |
|---|---|
| Annual premium | ₹1,00,000 |
| GST at 18% | ₹18,000 |
| Total payable | ₹1,18,000 |
This example assumes the group policy is taxable at 18%.
How to Identify the Correct SAC Code for Insurance Services
To identify the correct SAC code, businesses should:
- Identify the insurance product: Determine whether the policy covers health, accidents, life, motor vehicles or another risk.
- Check the classification: Use SAC 997133 for qualifying accident and health insurance services.
- Verify the GST exemption: Check whether the policy is an eligible individual health insurance policy or a taxable group or accident insurance product.
- Review the policy documents: Confirm the coverage, insured persons, policyholder and premium details.
- Apply the correct GST treatment: Record the applicable exemption or GST amount in the insurance documents.
The official GST Portal can be used to verify the SAC classification.
How to Record Accident and Health Insurance Premiums
Businesses should maintain accurate records of insurance premiums, GST charges and related payment details.
For taxable insurance policies, the invoice or premium document should identify the insurance service, applicable SAC code, premium amount and GST charged.
For exempt individual health insurance policies, the document should reflect the applicable exemption rather than charging 18% GST.
Businesses should also distinguish between insurance purchased for business purposes and personal insurance expenses when maintaining accounting records.
Related SAC Codes for Insurance Services
| Insurance service | SAC code | Classification |
|---|---|---|
| Life insurance services | 997132 | Life insurance |
| Accident and health insurance services | 997133 | Health and accident insurance |
| Motor vehicle insurance services | 997134 | Vehicle insurance |
| Marine and aviation insurance services | 997135 | Transport-related insurance |
| Freight and travel insurance services | 997136 | Freight and travel insurance |
| Accident and health reinsurance services | 997142 | Reinsurance of accident and health risks |
For additional insurance and financial service classifications, explore the SAC code directory.
Frequently Asked Questions
What is the SAC code for accident and health insurance services?
The SAC code is 997133, covering insurance services relating to medical expenses, accidents, disability and other specified health-related risks.
What is the GST rate on health insurance in India?
Eligible individual health insurance policies, including family floater and senior citizen plans, are exempt from GST from 22 September 2025.
Is GST applicable to group health insurance?
Yes. Group health insurance generally continues to attract 18% GST, including employer-sponsored group health policies.
Is personal accident insurance exempt from GST?
Not every personal accident insurance policy is automatically exempt. The applicable GST treatment depends on the insurance product and whether it qualifies under a specific exemption.
What is the SAC code for health insurance reinsurance?
Accident and health reinsurance services are classified under SAC 997142. Reinsurance of qualifying individual health insurance policies is exempt under the relevant provisions.
Can businesses claim ITC on group health insurance?
ITC eligibility depends on the CGST Act, including Section 17(5). Employee health insurance is generally subject to restrictions, with exceptions such as insurance required under applicable law or other qualifying circumstances.
Official Sources
- GST Council – Scheme of Classification of Services
- GST Council – Explanatory Notes to Classification of Services
- GST Council – 56th Meeting Recommendations, September 2025
- Ministry of Finance – GST Rate Change FAQs
- GST Portal – Search HSN/SAC Code
Last Reviewed: 23 October 2026
