Page 7 - Insurance Times November 2023

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ICICI Lombard gets Rs. 1,728 crore GST notice investment in human capital and re-
sources, Neelesh Garg, Managing Di-
The Directorate General of GST Intelligence (DGGI), the GST investigation rector And Chief Executive Officer of
agency, has served a Rs 1,728 crore demand notice on ICICI Lombard Gen- Tata AIG General Insurance, said, "This
eral Insurance for non-payment of tax in certain supplies between July 2017 industry needs fresh thinking and hu-
and March 2022. man capital to achieve Insurance for
The insurance sector is pushing for a reduction in GST on health policies to All by 2047. Human capital is the most
bring more people under the insurance umbrella. There's speculation that important raw material, and it is the
the GST Council is likely to reduce the GST on health policies from 18 per training and retention of these that is
cent to 12 per cent or even lower. key for the growth of the sector."
ICICI Lombard said in a statement: "The alleged demand and the impugned
show cause cum demand notice pertains to non-payment of GST on the co- Shiram General to focus
insurance premium accepted as follower in case of co-insurance transactions on non-motor insurance
and non-payment of GST on reinsurance commission accepted on the rein-
surance premium ceded to various Indian and foreign reinsurance compa- biz
nies during the period July 2017 to March 2022," ICICI Lombard said. Shriram General Insurance has
planned to diversify its product portfo-
The notice refers to matters relating to industry-wide issues, the company
said, adding that it will file an appropriate response within the prescribed lio by focusing more on the non-motor
timelines. segments like marine, fire, during the
current financial year, a top official
said.
Insurance industry lacks He further said that the lack of skilled
professionals has affected the Assets Motor insurance has been the core of
human capital in adminis- under Management (AUM) of these the business for the Jaipur-based firm
tration and marketing companies. Most of the life insurance accounting to about 92 per cent, com-
companies have asset values which are pany Chief Underwriting Officer Shashi
The Indian insurance industry, which
suffers from a dearth of human capital less than Rs 10,000 crore. Kant Dahuja said.
in administration and marketing func- As of the financial year ending in As part of the diversification plan, the
tions, should invest in human capital, March 2022, the overall AUM of the company would launch new insurance
BC Patnaik, Member (Life) IRDAI, said. insurance industry stood at Rs 55 lakh products under the fire, marine, engi-
"There has been a clear lack of invest- crore. Out of which, the AUM of the neering segments, he said.
life insurance industry stood at Rs 50
ment in human personnel in the admin- "The idea is to double our non-motor
istrative and marketing wing of insur- lakh crore and the non-life industry was business to around 15 per cent in two
at Rs 5 lakh crore.
ance companies," Patnaik said at an in- to three years from the current 7-8 per
surance summit. Further emphasising the importance of cent," Dahuja told.

The Insurance Times November 2023 7