Page 16 - Insurance Times June 2023

Pvt life companies see 35% companies closed lower despite the
GST violations case: jump in business numbers - HDFC Life
surge in March premiums
Finmin refuses to act fell 3%, while SBI Life slipped 2%.
at Rs. 23000 crore
on industry plea, refers
Private life insurance companies saw a LIC's knock-on effect:
matter to IRDAI
sharp jump in their premium incomes
Insurers' new business
The finance ministry has declined in March 2023 ahead of the tax breaks
to intervene in a plea for relief premium drops 12.6%
on high-value policies coming to an
made by the insurance industry,
end. The Union Budget has withdrawn The new business premium (NBP) of life
which is facing penal action from
tax breaks on covers where the annual insurance companies dropped 12.62
tax authorities for goods and
premium crosses Rs 5 lakh. per cent year-on-year (YoY) in March
services tax (GST) input tax credit 2023 due to an over 30 per cent drop
According to data released by IRDAI,
violations. The ministry has
private life insurance companies saw in Life Insurance Corporation (LIC) of
referred the matter to the IRDAI,
India's premiums, albeit on a high base.
their March premium grow 35% to Rs
said people with knowledge of the
23,365 crore, which helped boost their Data released by the Life Insurance
matter. Officials peg the alleged
full-year premium by 20% to Rs Council shows the industry racked up
tax evasion at over 2,000 crore.
1,38,643 crore. NBP of Rs 52,081 crore in March 2023,
The industry had approached the
compared with Rs 59,608.83 crore in
revenue department seeking a The industry, however, registered a
the year-ago period.
lenient view of the industry-wide lower growth rate in March as LIC saw
commission practice and not to its premium income shrink by 12.6% to NBP is the premium acquired from
treat these violations as wilful Rs 28,716 crore vis a vis Rs 42,319 new policies in a year. It is the sum of
evasion. In a letter to the crore last year. The corporation grew the first-year premium and single
department signed by 22 insurers its business by 16.7% for the full year premium, reflecting the total premium
and intermediaries, the industry to Rs 2,31,899 crore. received from new businesses.
also sought relief from the
Among the large insurers, HDFC Life While private life insurance companies
frequent summons and the large
recorded the highest growth of 83% in reported healthy growth of over 35
penalties imposed.
March 2023 to Rs 5,805 crore, and per cent in NBP during this period to
"We cannot interfere in the Max Life grew 43% to Rs 1,987 crore. Rs 23,364 crore, aided by a 57 per cent
investigation and if there is an Tata AIA Life grew by 88% to Rs 1,964 jump in individual non-single premiums
issue regarding commissions, crore, while SBI Life reported a and a 24 per cent uptick in group single
IRDAI is the authority, so they
premium income of Rs 3,503 crore for premiums, state-owned LIC saw its
were referred to approach it," an
March 2023, an increase of 23% over premium dip 32 per cent to Rs 28,716
official told.
the previous year. Shares of life crore. In the year-ago period, LIC had
The Insurance Times June 2023 15