Non-life premia likely to pay price of new tax on insurers

Insurance premia on health, fire, motor, marine and engineering policies could rise sharply with the government deciding to impose a 30% tax on the investment income of non-life insurance companies. The government has inserted a clause in the Finance Bill, 2009 specifically saying that as per the Irda format, profit on investments should be routed through the PandL account, meaning all realised gains should be taxed as business income. So, the entire thing which was not taxed till now, which we are on appeal at various stages, will be taxed, said M Ramadoss, chairman and managing director of Oriental Insurance ...

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