Page 7 - Insurance Times September 2023

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News

General insurers' pre- ICICI Lombard gets notice Kotak Mahindra Bank and because
Kotak believes it shares more common
mium increases 18.3% in for GST of Rs. 273 crore business areas with Chubb such as auto

July ICICI Lombard has received a show- insurance, according to one of the
cause notice from the Directorate people.
General insurance companies in In-
General of GST Intelligence that has
dia witnessed an 18.3 per cent in- demanded Rs 273 crore in taxes. Zurich has been discussing a stake of
crease in premiums in July, amount- either 49% or 51% and the majority
ing to Rs 23,259 crore. In the first The demand relates to GST on salvage stake would likely value the firm at
four months of the current financial and ineligible tax credit for motor in- around $800 million, the sources have
year, these firms saw a growth of 17 surance claims, as reported in a stock previously said.
per cent, collecting premiums total- exchange notification. As a response, But if Chubb were to win out, the deal
ing Rs 80,177 crore. ICICI Lombard has deposited Rs 104 would value Kotak at less than $800
crore, under protest, without admit-
Stand-alone health insurers re- million as it would not include a so-
ting any liability in this matter. This
ported a growth of 24 per cent to called buy our premium.
Rs 2,665 crore in July, and a 25.8 per deposited amount has been disclosed
cent rise to Rs 9,322 crore in the in the company's financial statements Ship carrying 3,000 cars &
first four months. for FY23, under contingent liability.
The matter primarily revolves around manned by Indian crew
Non-life insurers (excluding
specialised insurers) reported a pre- a widespread concern about whether catches fire in N Sea
GST should be applied to salvage ad-
mium growth of 18.9 per cent to Rs An Indian crew member was killed and
justed and ineligible input tax credits
25,924 crore in July. These insurers 20 others were injured when a fire
for motor claims that have been
experienced a growth of 17.9 per broke out on a cargo ship carrying
settled within the industry.
cent in the first four months. nearly 3,000 cars off the coast of the
New India Assurance, the largest Chubb eyes 49% in Kotak Netherlands. The fire started night on
general insurer holding a 15 per the Fremantle Highway, a Panama-
cent market share, saw its premium insurance arm registered ship that was en route from
income grow by 8.9 per cent to Rs US insurer Chubb is in talks to acquire Germany to Egypt. Several crew mem-
3,255 crore in July. a 49% stake in Kotak General Insur- bers were forced to jump overboard,
ICICI Lombard, the leading private ance and has become a more favoured and Dutch coastguards warned that
general insurance company with a suitor than Zurich Insurance Group, the fire could last for several days.
9.66 per cent market share, experi- two people with direct knowledge of The Indian Embassy in the Netherlands
enced a 21.91 per cent growth, with the discussions said. said that one of the crew members
its July premium amounting to Rs Chubb has an edge over Zurich as it is who died was an Indian national. The
2,389 crore. embassy is in touch with the family of
more amenable to leaving control with
The Insurance Times September 2023 7