Page 7 - The Insurance Times August 2025

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New India Assurance Faces Rs. 2,298 Crore GST De- formalizing operations for a broader
range of vehicle types on aggregator
mand platforms across the country.

New India Assurance Company Ltd has received a Goods and Services Tax
(GST) show cause notice from tax authorities demanding Rs. 2,298 crore TTD Considers Insurance
for five financial years from April 2018 to March 2023. The notice, dated Cover for Tirumala Pil-
June 26, 2025, was issued by the office of the Additional Commissioner,
Mumbai-South and Maharashtra State. grims
Pilgrims to Tirumala may soon receive
In a regulatory filing, the state-owned insurer stated that it has a strong
comprehensive insurance coverage
case on merit and is currently preparing a detailed response. The company
under a new initiative by the Tirumala
is taking advice from its tax consultants and intends to submit its reply to
Tirupati Devasthanams (TTD). The fea-
the Adjudicating Authority within the stipulated timeline.
sibility of offering such a scheme is cur-
This development marks a significant compliance challenge for the insur- rently being assessed, with the board
ance major, though it maintains confidence in its legal and financial posi- expected to take a final decision after
tion. The outcome of this case could have wider implications for the insur- discussions with insurers.
ance sector's GST compliance framework, especially regarding interpreta-
tion and application of indirect tax rules in financial services. The proposed policy may include cov-
erage for life and medical emergencies
and would likely be integrated with
Centre Caps Vehicle Age the back of the front passenger seat, the darshan ticket, with TTD bearing
ensuring visibility for passengers. Addi-
for Aggregators at 8 Years, tionally, the updated rules formally the premium cost. The initiative is part
of a broader safety reform following
Tightens EV Norms recognize three-wheelers and private incidents earlier this year, including a
motorcycles as valid aggregator ve-
The Ministry of Road Transport and stampede that claimed six lives and
Highways has revised guidelines for cab hicles, offering clarity where state-level injured several others.
aggregators like Uber, Ola, and regulations previously differed.
The insurance would cover pilgrims
Rapido, setting an eight-year age limit Aggregators must also conduct psy- from entry points such as Alipiri and
for vehicles-cars, buses, three-wheel- chological assessments of drivers to Srivari Mettu up to their safe return.
ers, and motorcycles-operating on their determine their suitability. Impor- With daily footfall ranging from 70,000
platforms. The guidelines also mandate tantly, drivers cannot be restricted to one lakh, and peaking during festi-
adherence to state-set targets for in- from working with multiple vals, this step aligns with the Chief
corporating electric and zero-emission aggregators simultaneously. Minister's directive to enhance pilgrim
vehicles in fleets. These guidelines aim to enhance com- welfare and ensure safe, dignified spiri-

Drivers' licences and vehicle permits muter safety, environmental sustaina- tual experiences at one of India's holi-
must now be prominently displayed on bility, and regulatory transparency while est sites.

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