Which types of healthcare insurance policies are subject to Insurance Premium Tax (IPT)?

Healthcare insurance policies, whether they are categorized as group policies or individual policies, are subject to Insurance Premium Tax (IPT). This means that both types of policies, which cover different demographics—group policies often covering employees of an organization, while individual policies are purchased by private individuals—must adhere to the IPT regulations.

The rationale behind this is that IPT is a tax imposed on insurance premiums, and it is levied universally on the types of insurance covered under applicable legislation, with healthcare insurance falling within this scope. As such, it generates revenue for the government while applying consistently across various policy types. The fact that both individual and group policies are included helps ensure fairness in the taxation process across different healthcare coverage options available to the public.