Page 16 - The Insurance Times April 2025

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battle with the GST authorities, after
LIC launches non-par product Smart Pension the Adjudicating Authority (AA) of GST
The Life Insurance Corporation of India (LIC) has launched a single premium recently confirmed a demand of Rs.
"Smart Pension plan," offering a range of annuity options for single life and 2,400 crore raised against HDFC Life
joint life annuities. Insurance, people in the know said.
To subscribe to the "Smart Pension plan", which is a non-par, non-linked, "This could act as a precedent that
individual/group, savings, and immediate annuity plan, the minimum age could push the insurance industry's
at entry is 18 years. The maximum age at entry varies from 65 to 100 years total liability beyond Rs. 5,500 crore,"
depending upon the annuity option, per a LIC statement. said a senior government official.
The minimum purchase price is Rs. 1 lakh, with incentives for higher Based on an investigation by the
purchase prices. The Corporation said an incentive, an enhanced annuity Directorate General of GST Intelligence
rate, has been built into the plan for existing policyholders and nominees/ (DGGI), the GST department had sent
beneficiaries of deceased policyholders. The modes of annuity payments are show cause notices to around 30
yearly, half-yearly, quarterly or monthly. insurers about input tax credit (ITC),
totalling more than Rs. 5,500 crore,
ICICI Pru Life launches at a compounding rate of 5 per cent that it said they had wrongfully claimed.
per annum, thereby making it an In a recent filing with stock exchanges,
income guarantee product effective inflation hedge. HDFC Life said the GST AA has passed
ICICI Prudential Life Insurance has Amit Palta, Chief Product and a "corrigendum" for the period from
introduced 'ICICI Pru GIFT Select', a Distribution Officer, ICICI Prudential July 1, 2017 to March 31, 2022,
long-term savings product which offers
Life Insurance said the unique product demanding tax and penalties totalling
customers a guaranteed immediate
allows customers to get the benefit of Rs. 2,422 crore. The insurer said it is
income providing them with liquidity.
guaranteed income that they can in the process of filing a rectification
The product offers multiple flexibilities customise as per their life goals and application before the tax authority
to customers such as choosing when cash flow requirements. with respect to the penalty amount,
they want the guaranteed income to which has been "erroneously
start, the duration of the guaranteed Insurers brace for lengthy enhanced".
income and the amount that they can
get at the time of maturity. battle after GST penalty Insurers seek more time to
Additionally, the life cover component hits HDFC Life
ensures financial security for the family. Insurers facing allegations of roll out Bima-Asba payment
One of the unique features of the plan wrongfully claiming input tax credit on system
is the increasing income option wherein agent commissions are preparing Insurance companies have approached
the quantum of the income increases themselves for a long-drawn legal the Insurance Regulatory and

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