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GIC Re on Saturday said its Dubai Branch has received a VAT demand notice of approximately Rs 90.42 crore from the Federal Tax Authority (FTA) of the United Arab Emirates. The VAT demand notice comprises United Arab Emirates Dirham (AED) 12,868,602.71 in net due tax and AED 25,966,807.36 in administrative penalties. The demand notice relates to discrepancies in VAT returns filed for January 2018 to December 2020, GIC Re said in a regulatory filing. GIC Re is currently reviewing the order in detail and intends to file a reconsideration request with the Authority within the statutory timeline, it said. There is no material impact on financials, operations or other activities of the Corporation due to the above-mentioned order, it said.
In a crucial ruling, the Karnataka High Court has held that an insurance policy nominee does not have absolute rights over insurance benefits if the policyholder's legal heirs stake a claim. The court clarified that Section 39 of the Insurance Act, 1938, which governs nominations, does not override personal succession laws like the Hindu Succession Act, 1956. The judgment came in the case of Neelavva @ Neelamma vs Chandravva @ Chandrakala @ Hema and Others, where a dispute arose over the rightful claimants to an insurance payout. Justice Anant Ramanath Hegde ruled that a nominee can receive the insurance benefits only if the legal heirs do not claim them. If a legal heir asserts their right, the nominee's claim must yield to personal succession laws. The case involved a man who had named his mother as the sole nominee for two insurance policies before his marriage. After his marriage and the birth of his child, he did not update the nomination. Following his death in 2019, a legal .
Chola MS General Insurance Company Ltd has reported a 60 per cent increase in its profits before tax for the six month period ending September 30, 2024 at Rs 350 crore. The city-based company reported profits before tax of Rs 219 crore during the corresponding six months of last year. Chola MS General Insurance Company, is a joint venture between the diversified conglomerate the Murugappa Group and Japan-based Mitsui Sumitomo Insurance Company Ltd. "The rise in profits before tax for the six month period ending September 30, 2024, include Rs 22.7 crore of non-recurring income from interest on an income tax refund," Chola MS General Insurance said in a statement on Tuesday. As on September 30, 2024, the company's net worth stands at Rs 2,753 crore with 84 per cent derived from the accumulated profits. The Gross Written Premium for the quarter ending September 30, 2024 stood at Rs 2,191 crore, while for the six month period ending September 30, 2024 grew to Rs 4,136 crore. "Our ...
Life insurers recorded a 14 per cent rise in underwriting new business with a premium collection of Rs 35,020 crore in September. New business premiums stood at Rs 30,716 crore in same month a year ago. The new business premium collection in the first half of FY25 rose 19 per cent to Rs 1,89,214 crore from Rs 1,58,377 crore in the same period last year, as per the monthly data released by the industry body Life Insurance Council. Driven by a strong demand for enhanced insurance protection from individual consumers, new policy issuances too increased by 45.49 per cent on a year-on-year basis in the month, resulting in the addition of new 32,17,880 policies vis--vis 22,11,680 policies in the year-ago period, it said. According to data released by the Life Insurance Council, the life insurance industry saw individual single premiums growing 13 per cent to close at Rs 5,142 crore for September while year-to-date growth stood at 14.99 per cent. Meanwhile, Life Insurance Corporation (LI
The ministerial panel to decide on lowering goods and services tax (GST) on health and life insurance premiums will have its first meeting on October 19, officials said. Currently, 18 per cent GST is levied on insurance premiums and there have been demands to either exempt or reduce the tax. The GST Council in its meeting earlier this month decided to set up a 13-member GoM to decide on tax on health and life insurance premiums. Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM. The panel includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana. The GoM has been mandated to submit its report to the Council by October-end. A final call by the council on taxation of insurance premiums is likely to be taken in the next meeting in November, based on the GoM report. "The GoM on GST on insurance will meet on October 19 in Delhi," the official said. The terms of re
LIC chairman Siddhartha Mohanty has said that the insurer would enter into the health insurance segment and can explore inorganic options if such an opportunity arises. There are expectations that composite licences may be permitted by amending the Insurance Act. As per the Insurance Act, 1938, and the regulations of the Insurance Regulatory Development Authority of India (IRDAI), composite licensing for an insurer to undertake life, general, or health insurance under one entity is not allowed. LIC is not an expert in general insurance like fire and engineering but it can do health insurance, he said while sharing financial numbers for FY24. "Internal work is going on...we will explore inorganic growth in health insurance," he said. In February, a parliamentary panel suggested the introduction of a composite licence for an insurer to undertake life, general, or health insurance under one entity to increase the penetration of insurance in the country. The panel headed by BJP leader